Are you one of 96% of businesses who dont know about RTI? It could prove costly!

We attach a very important update received from a business that offers us technical support - we are sharing it because we were shocked that research has shown that more than 96% of businesses in UK are unaware of the impending launch of RTI and the penalties for non compliance.

We urge you to read this, to make sure your business is not one of the 96% who will be penalised unnecessarily.

RTI: HMRC Is Making Hidden Announcements And 96% Of SMEs Don’t Know RTI Is Coming

In reviewing the latest Real Time Information (RTI) news and guidance, we have recently come across a range of relaxations made by HMRC, which they are yet to formally announce.

Once an employer is operating RTI (from April 2013 in most cases), each time a taxable or NICable payment is made to an employee a Full Payment Submission (FPS) must be sent to HMRC to advise them of amounts paid and what deductions, if any, have been made.

This information must usually be submitted “on or before” the time when payment is made.

HMRC has recently provided a table of “situations where employers will not have to report PAYE information ‘on or before’ the time they pay their employee”

The current version of the table (at the time of writing) is shown at the end of this article.

As can be seen, there are now a number of specific rules that apply in certain circumstances. These extend the filing deadline where:

  • An ad hoc payment is made outside of the normal payroll cycle and it is not established practice to do so.

  • A new starter is notified late to the person running the payroll.

  • A payment is made to an employee without a payroll record / P11.

  • The wages payment(s) cannot be determined until the day of payment.

  • Benefits are provided (or expenses reimbursed) that are not subject to tax under PAYE, but are subject to Class 1 National Insurance Contributions.

  • Notional payments (no transfer of money) are made.

  • Earnings and notional payments are delivered by overseas employers and third parties to employees for duties performed on assignment in the UK or overseas.

  • Employment income is paid in respect of employment-related securities (for example, on the exercise of share options).

Also this month, it has been reported by Economia that 96% of companies (or their clients) have either no knowledge of the RTI changes or no idea of its implementation.

If you wish to have help keeping up to date with changes, please let us know if you want us to keep you informed , as we learn more by replying to this email with the following subject heading - RTI - please try to keep us in the loop

 Click on the link to see HMRC’s table of “situations where employers will not have to report PAYE information ‘on or before’ the time they pay their employee”

Disclaimer . The material contained in this article neither purports, nor is intended to be, advice on any particular matter. This article is an aid and cannot be expected to replace professional judgment. OBC  accepts no responsibility or liability to any person in respect of anything done or omitted to be done by any such person in reliance, whether sole or partial, upon the whole or any part of the contents of this article.


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