What is involved & prepare your business

What is involved?

From April 2013 you will be required to send data electronically to HMRC every time you pay your employees rather than with your end-of-year tax return.  

You will need to submit:

     -  EAS – Employers Alignment Submission, which matches your employee records with what HMRC have  

     -  FPS – Full Payment Submission is the main and most common submission type consisting of the employee payments and deductions that will be required each time an employer makes a payment to an employee.  HRMC will use this submission to calculate how much PAYE and NIC liability is due from you each tax month.  You will need to submit an FPS every time you make a payment to an employee and the submission must be made on or before the date the employee is paid.  Therefore if you process a mixture of weekly and monthly payrolls for your business, you will need to submit an FPS each time you pay your weekly and monthly employees.
(This is done each time you pay an employee)

     -  EPS – Employers Payment Summary.  HMRC will know from your regular FPS submissions how much your PAYE and NIC liability is.  The EPS is only submitted where you need to advise HMRC of any alteration to this liability (such as where reclaiming statutory payments) or were you are informing them of a nil payment.  You should make this submission when or before the relevant monthly or quarterly liability payment is made to HMRC.
(This is sent each time you pay HMRC)

     -  NVR – National Insurance Verification.  This will confirm NI numbers are correct (when adding new employees)

 

Changes to Payroll Year End

RTI will change the way Payroll Year End works.  Although you will still be required to provide your employees with P60s and complete P11D and P11D(a) forms for taxable benefit and expenses, there will be some tasks that you no longer need to complete, these include P14 and P35 submissions and P38A returns for casual employees.

  

Prepare your Business

Sage RTINew Sage 50 Payroll RTI Edition has been designed to ensure the easiest transition
to RTI possible, with a number of new features to help you get prepared for this important legislation change.

New features in the new version include:

     -  ‘Show me How’ – Support feature which is visible throughout the program to provide help, support & guidance 

     -  RTI Centre – The RTI Centre includes all information on Preparation for RTI, Processing Payroll under RTI, Period End Reporting, Corrections, National Insurance Verification & Year End under RTI 

     -  New Report Browser – Introduced in Sage 50 Payroll RTI Edition is a new report browser interface to improve the user experience of reporting.  They key changes include: detailed report descriptions, Quick links to  favourites and Report view thumbnail.

 

Bullet Point  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 will also penalise you if you if your payments are late.

If you have a valid Sage Cover Contract your software is already RTI compliant there will be no software costs. 

 

If you do not have a Sage Cover contract please contact  us on 020 7831 3050   or email: info@CentrePointSoftware.co.uk to see how you can make your software RTI compliant.

  

 

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