Payroll Changes

From April 2013 a compulsory system of online monthly or weekly payroll submissions to HMRC will be introduced, called Real Time Information (RTI). People who are not involved in administering payroll may be surprised to hear that currently HM Revenue & Customs (HMRC) waits until 19 May to receive details of how much employees and pensioners have been paid in the previous tax year.
From April next year HMRC will require employers to submit information on pay and deductions for every employee whenever they are paid, over the internet. Benefits in kind such as company cars and medical insurance will also need to be reported online as they change. This will give employers another new system to come to grips with. HMRC are running a pilot scheme which is being introduced in phases this tax year. At Mansell & Co we have decided to enrol most of our clients onto this pilot scheme as it will give us more time to learn how to operate it before it is compulsory. This means we will be fully geared-up to handle it by April.
The benefit of the scheme to HMRC is that they will be aware of employees’ changing pay amounts and other circumstances and so should be able to issue PAYE codes more accurately and promptly. RTI will also give regular information to the Department of Work and Pensions (DWP) to assist with the administration of the new Universal Credit benefits system.
If you operate a payroll scheme and are concerned about the changes we can take over its administration for you at very competitive rates. If you would like our help, whether you have only one employee or hundreds, please contact us to discuss your needs and obtain a quotation.

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