Sage Payroll RTI update

Sage Payroll RTI Update

As the UK’s leading provider of Payroll solutions, Sage has been working very closely with HMRC to ensure that their software is compliant and offers end users a simple, user-friendly update to meet the new requirements.

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Sage Payroll RTI update

Real Time Information is a payroll reform being introduced by HRMC which will require all employers to make regular submissions, rather than once a year at Year End. These submissions will contain a range of information about the payments made to employees, including how much PAYE and NIC has been deducted.

Every business in the UK will be required to move to RTI by October 2013.

As the UK’s leading provider of Payroll solutions, Sage has been working very closely with HMRC to ensure that their software is compliant and offers end users a simple, user-friendly update to meet the new requirements.

Sage has recently launched its initial ‘alpha’ software update to CPiO for thorough testing before providing customers with another update. We’ve included more details around the changes from April 2013 and how they may affect your business. CPiO is also writing to your organisation to ensure you are aware of the more specific details around RTI for your version of software.

So, what is RTI?

RTI is a reform of the PAYE system that will require employers to make submissions of employee payment and deduction information when or before payments are made to employees. It will also make the verification of employee National Insurance numbers more efficient and simplify the end of year process. Employers may also be required to make submissions about their monthly or quarterly payments to HMRC.

RTI and BACS

The HMRC have reviewed their position and submission of RTI via BACS is no longer mandatory. The HMRC will be communicating further details about the requirements and timetable for BACS in due course and we’ll update you then.

Why are HMRC introducing RTI?

RTI is being introduced to improve the operation of PAYE and support the introduction of Universal Credits. RTI will increase the frequency at which employers submit information to HMRC, allow HMRC to react more quickly and efficiently to changes in employee’s circumstances and reduce the likelihood of repayments or bills being issued to employees after the end of the tax year. RTI will also help HMRC reduce costs and deal with non-compliance and fraud more easily.

When will RTI affect you?

The mandatory migration period for employers to become RTI compliant is phased from April 2013 to October 2013 and HMRC will notify employers 4-6 weeks before they are required to begin making RTI submissions.

Instead of sending information once a year at Payroll Year End, you’ll need to submit information electronically to HMRC for PAYE, NIC and student loans etc. every time you pay your employees.

When RTI becomes mandatory, Sage will ensure all of Payroll customers have access to an updated version of their Payroll software that will include the ability to submit Real Time Information electronically to the HMRC using our existing proven Sage Internet Submission technology.

How do you become compliant?

Sage is currently doing the necessary testing to the revised payroll software to enable you to be compliant for RTI submissions and we’ll be making this available after Christmas.

It’s important to start preparing now for RTI. Although RTI will be a highly-automated process, with reporting to HMRC embedded into your payroll software, you need to think about what RTI means for your organisation, how you run your payroll and your business processes.

http://www.hmrc.gov.uk/rti

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