New HMRC Real Time Information - be prepared - Business Works
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New HMRC Real Time Information - be prepared

Sarah Coulson, Rawlinsons Payroll and HR Businesses are being warned to ensure that they are taking the necessary steps to allow for the smooth introduction of HMRC’s new Real Time Information system.

From April 2013, employers will need to report employees' pay and tax details to HMRC at the time they are made. Currently records are submitted at the end of each tax year. Rawlinsons Payroll and HR department has been involved in a pilot scheme, working with HMRC and its clients to help iron out glitches and develop a strategy for other companies to use.

Until now, the annual reconciliation of accounts has meant that discrepancies can take up to 52 weeks to come to light. Employers, or payroll bureaux like Rawlinsons, have then had to trawl back through a year of records to uncover any errors. The new system should mean any discrepancies can be ironed out week by week, or month by month, and employer's records adjusted immediately.

"We signed up very early in the process to be involved in the pilot scheme, recognising the importance of ensuring a smooth transition to this new way of supplying important information," said Manager Sarah Coulson. "We have been working with HMRC and clients for several months and are confident that we have in place everything necessary to deliver the required information."

Sarah and her team are filtering back their results to HMRC, along with others involved in the pilot, to allow a blueprint to be created for others to follow. She is now urging other companies to ensure they have in place the necessary processes to remain compliant.

"We have been pleased at how easy the new reporting system has been to operate. The key to its introduction is ensuring that all the employee data held is accurate, including names, sex, hours worked and National Insurance number. Once that is verified, the new system simply involves the addition of a further step in the payroll process before it is closed each week or month."

"This is a mandatory change to the reporting of information and companies must be aware of what they need to do to make the switch in plenty of time," said Sarah. "The government has claimed that the Real Time Information system will make it easier for employers, pension providers and HMRC to administer PAYE. Our experience so far suggests that this is the case. The immediacy of information availability is so common now that it does feel like this system is simply bringing HMRC in line with other technology and processes companies utilise. The new system is due to be introduced by April 2013 with mandatory compliance by October."



To contact Sarah or for more information, please visit: www.rawlinsons.co.uk



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