Are you able to meet the requirements of RTI?
|Under RTI every employer is required to electronically submit a Full Payment Submission document (FPS) to H M Revenue and Customs at or before the time that each and every payment is made to employees. The submission must include all permanent and casual staff.|
The FPS informs HMRC of:
- Starter and leaver information
- Employee information such as name, address, NI number, Tax Code
- Employee payment and deductions
- PAYE, NIC and Student Loan Contributions deductions
Even if you are not paying anyone in a particular month you are still required to make a “Nil” submission.
From the FPS information, HM Revenue & Customs calculate the total liability due for that period. However, it does not give them information about any adjustments such as Statutory Payments recovered or, if you are a Limited Company, CIS Deductions Suffered. If this is the case you need to submit an Employer Payment Submission (EPS) which can only be done during the period from 6th to 19th of each month.
The RTI system requires very accurate data to be entered onto the system. As an employer you are responsible for ensuring that the information is correct and kept up to date. For each employee you will need to ensure that all of the following are correct:
- Full Name: i.e. Jonathon Marcus Smith
(and Not Mr Jon M Smith or Jonathon Smith)
- Date of Birth
- National Insurance Number
(This should be in the format of Two Letters, Six Numbers, Followed by an A, B, C or D eg. JN 12 23 34 A)
HMRC started imposing penalties for late submission of the monthly forms from 6th October 2014. If you have been receiving messages from the Generic Notification Service (GNS) advising you that you have sent in a late submission or that they have not received the number of FPS returns they were expecting, these will soon be accompanied by a penalty notice.
Employers with less than 50 employees became subject to penalties from 6th March 2015, so you need to take action to ensure your submissions are correct and accurate in order to be prepared for the stricter regime to be imposed by HMRC.
The size of the penalty for non-compliance will depend on the number of employees but ranges from £100 – £400 for each late submission.
Late with your PAYE payments
On top of this, the penalties for late payment of tax will remain in force. These are calculated as a percentage of the tax paid late. The percentage ranges from 1% – 4% of the tax liability and the size of the penalty depends on the number of late payments in a tax year.
H M Revenue and Customs review accounts with late payments at the end of the tax year and issues applicable penalties then.
Since April 2014, eligible employers have been able to claim up to £2,000 against the amount of Employer Class 1 National Insurance Contributions (NICs) they have to pay every year. (Note that the relief is against the Employer NIC only, not the Employees’ deductions.)
To receive this relief, all you need to do is check your eligibility with HM Revenue & Customs, and then claim the allowance through your payroll.
How We Can Help
Stevens & Willey have a dedicated payroll department which specialises in the administration of payroll schemes.
We can tailor our service to meet your needs, to include:
- Pay runs on a weekly, fortnightly, 4 weekly or a monthly basis – or a mixture of these.
- We can post or email payslips either direct to yourself or directly to each employee. We also offer a collection service from our office if you are close by.
- We have the ability to arrange the payments to employees and HMRC through your bank accounts (providing your bank offers this facility).
- We will ensure all RTI deadlines are met provided that you supply us with the required information in a timely manner. We will remind you of approaching deadlines if necessary.
- We will advise you of the PAYE liability payable and the applicable payment deadline.
- We can claim your £2,000 employer allowance upon your behalf, if applicable
- We will liaise with HMRC when required.
- We can complete statutory monthly Construction Industry Scheme (CIS) Returns and provide payment statements for the sub-contractors working for you.
- We can also offer advice and/or assistance to clients who administer their own payroll and or CIS system.
For peace of mind in knowing that someone else is looking after the administration of your payroll scheme upon your behalf, please call Allison Cooke for a no obligation quote on 01271 321621.
Our payroll services may not be as expensive as you might think – especially bearing in mind the cost of purchasing proprietary software and the annual update and maintenance charges.