What is RTI?
RTI doesn’t change the way you calculate PAYE, it just means you’ll need to make more regular submissions. Each time you pay your employees you’ll need to submit PAYE information to HMRC, rather than just once a year at Payroll Year End.
Following concerns over the impact of RTI on small businesses rules of reporting were relaxed but from October this year those relaxed rules will be lifted and small businesses will need to start reporting each time they pay their employees not just monthly.
It’s important that small business act now to make sure they’re ready for reporting RTI fully and accurately to avoid the risk of a fine and any penalties.
What do I need to do to submit to HMRC?
You’ll still need to process PAYE in the same way but you’ll need to submit the payroll information to HMRC on or before the day you pay each of your employees.
You’ll need to do this using a Full Payment Submission (FPS).
If you don’t need to pay any of your employees in a particular tax month, you’ll therefore have no FPS to send to HMRC so you must notify them by sending an Employer Payment Summary (EPS) by the 19th of the following tax month. This will make sure HMRC don’t wrongly send you a penalty because they were expecting an FPS from you.
What happens if I don’t submit to HMRC?
HMRC will penalise you if you are not submitting your Full Payment Submission or Employer Payment Summary on time. They’ll also penalise you if your payments are late.
But don’t fret…
BusinessPaye are fully HMRC compliant with RTI and we will do all of this for you.