Tag Archives: PAYE

RTI and micro employers

HMRC have announced that, although the vast majority of employers are finding PAYE reporting in real time straightforward, a small proportion of micro employers and their agents still need more time to adapt. They have therefore announced that existing employers with nine or fewer employees who need more time to adapt will be able to report PAYE information on or before the last payday in the tax month until April 2016.

HMRC will be encouraging micro businesses to adapt their processes sooner to ensure that they are ready to report all payments each time they pay their employees by April 2016.

End to the current relaxation

The current relaxation which applies to employers with fewer than 50 employees comes to an end in April 2014. Conditions for the current relaxation can be found by visiting the link at the end of the HMRC article.

All employers starting to operate PAYE after 6 April 2014, as well as existing employers with 10 or more employees, will need to report each time they pay their employees from April 2014.

This relaxation is part of a package of measures to help micro employers as they move towards full reporting of PAYE information in real time. The package also includes:

  • guidance such as ‘Situations where employers will not have to report PAYE information ‘on or before’ the time they pay their employee’ which can be found at the end of the HMRC article and
  • ongoing work to develop new ways to report PAYE information on a timely basis, for example using mobile apps.

If you would like any help with payroll issues please do get in touch.

Internet link: HMRC news

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HMRC chase those who have missed RTI deadlines

HMRC are writing to the 167,000 employers who have missed one or more of the deadlines for reporting their PAYE information in real time.

The majority of employers should have started to report their PAYE information under RTI from the first payday on or after 6 April 2013. According to HMRC more than 1.6 million employer PAYE schemes, covering over 40 million individual records, are already reporting under RTI.

If you receive a letter and would like help with your payroll procedures, or do not believe you need to report any payments, please do get in touch.

Internet link: Press release

PAYE RTI and annual schemes

HMRC are advising that they have now fixed the issue with Annual PAYE schemes.

HMRC received a number of requests since April from employers, asking that the status of their PAYE scheme be changed to annual. Due to technical issues they were unable to process the requests at the time. HMRC have now resolved the issue and have accepted all the requests that have been made and changed those schemes to annual. They will not however, be notifying employers that the change has been made.

If you are interested in changing your scheme to annual please do get in touch. However please be aware that under an annual scheme the payroll must meet all of the following requirements:

  • all the employees are paid annually (generally only applicable to directors only PAYE schemes)
  • everyone is paid within the same, single tax month and
  • the employer is only required to pay HMRC annually.

Internet link: HMRC news

Download Basic PAYE Tools

HMRC have updated their Basic PAYE Tools which is a software package designed to help those employers operating their own payroll.

The Basic PAYE Tools can be used by employers with nine or fewer employees. The tools calculate the tax and National Insurance Contributions for employees and enable the employer to report the necessary payroll information to HMRC under RTI.

HMRC are advising users to ensure they download the latest version of the tools and any updates. For more information visit the link below.

Internet link: HMRC Basic PAYE Tools

Real Time Information and paying HMRC

HMRC are reminding employers that they need to pay their PAYE liabilities ‘on time and in full’ although they are mindful that employers are still getting used to reporting under RTI.

The due dates for payment remain unchanged. Cheque payments therefore need to be received by the 19th of the month following the end of the tax month of deduction and cleared electronic payments by the 22nd.

Under RTI HMRC are aware of the amount of PAYE payment due as this is the:

  • total amount shown on the Full Payment Submission(s) (FPS) for a tax month, including any corrections or adjustments submitted on or before the 19th of the following month
  • less the amount shown on any Employer Payment Summary (EPS), also submitted on or before the 19th of the following month.

Where amended or additional EPS or FPS returns are made after the 19th of the month these will be reflected in the payment due for the following period.

HMRC also advise that employers should also use an EPS to tell them that there is no FPS to send (where no employees have been paid in the month) as, without it, HMRC will estimate what they believe is due and expect the employer to pay it in full.  This estimate is known as the ‘specified charge’.

A specified charge will be issued for each month that the employer fails to report. A specified charge does not replace the need for an employer to send a FPS, as this still needs to be sent to report the actual deductions the employer has made.

Where an employer submits an FPS or EPS within seven days of the specified charge, these submissions will overwrite the specified charge. This means that an employer can pay the reported amount rather than the specified charge.

Employers can check their 2013/14 PAYE payment position by using the online PAYE Liabilities & Payments Viewer to confirm the real time submissions that HMRC have received and to check what is owed and been paid. This viewer will also include any specified charges.

Please do get in touch if you have any queries on payroll issues.

Internet link: HMRC news