The payroll system is facing its
biggest overhaul since its inception in the 1940s and The HR Dept is advising
businesses of any size to prepare now.
From April 2013 HMRC is to implement a
new method of reporting PAYE. The current method of reporting a workforce’s
PAYE is manually, once a year. From April 2013 employers must send HMRC PAYE
information when or before their workers are paid. This will depend on the
employer’s payment frequency so reporting could be required on a weekly basis.
The HR Dept payroll service is however
at the forefront of these changes, having taken part in HMRC’s pilot scheme.
Clients who outsource their payroll to The HR Dept will benefit from a payroll
company that is well practised in Real Time Information (RTI) and will ensure
their PAYE scheme is meeting the new HMRC requirements in 2013.
Simon Morgan, Director of The HR Dept
[South East London and North Kent] comments “The new method of reporting
PAYE is undoubtedly going to increase administration and costs if done
in-house. New approved electronic software will have to be implemented,
employee data will need to be continually updated, not to mention the weekly or
monthly reporting to HMRC when employees are paid. We are really pleased that
our clients are able to benefit from a payroll service that is RTI ready and
businesses that have not yet prepared themselves are advised that there will be
a penalty regime operated to ensure compliance.”
Real Time Information will eventually
offer a simpler and more accurate method of reporting tax and national
insurance, to combat the problems HMRC faced in 2011 when it had to make repayments
to those who had overpaid on tax and request payments for those who had
underpaid.
Contact The HR Dept for help and
guidance on RTI and our up to date payroll service.
The HR Dept
[South East London and North Kent] specialises in advising small and medium
sized business on all employment issues.
simon.morgan@hrdept.co.uk
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