Did you know

REAL TIME INFORMATION (RTI)

Between April 2013 and October 2013 Real Time Information (RTI) will be the new method of reporting to the Inland Revenue each time you pay your staff ie. weekly, monthly etc. This is instead of reporting at the end of the year on form P35. You will need to report all pay and tax information by midnight on the day you pay your staff.

Check with your payroll software provider to confirm that the software will be ready and that it will be able to cope with the new legislation.

Check that your exisitng payroll records have all the information required for RTI as this will be required for your Employer Alignment Submission (EAS). The EAS is the initial submission required so the Revenue can capture the employer details and the employee details, this procedure may be part of your first Full Payment Submission (FPS).

You will not be able to re-submit this information so it is vital that all the information is complete and correct.

The Revenue will contact you if they find any data inaccuracies.

You may need to look at the way you capture your employees data to ensure you comply with the Revenue's new criteria. The information that must be held for each employee is as follows:

  • Full formal name as shown on their birth certificate, driving licence or passport.
  • Date of Birth. This must be verified against birth certificate, driving licence or passport
  • Current gender
  • Address including UK postcode.
  • National Insurance number (if known)
  • Employee ID number
  • Liability to pay student loan
  • Start date and starter declaration (P46 statement)
  • NI category letter
  • Employee's pay frequency
  • Whether the individual is a company director and the basis of the calculation the employer chooses to account for Class 1 NICS.
  • The tax code to be assigned to the first payment of wages, and the basis on which that code is to be used.

    If you already take copies of the original passport as part of your identification checks for the employee's rights to work in the UK then the Revenue are requesting the passport number.

    IT IS THE EMPLOYERS RESPONSIBILTY TO VERIFY THEIR EMPLOYEES DETAILS BEFORE SUBMITTING TO THE REVENUE.

    If you employ casual staff that are below the Lower Earnings Level (LEL) these will now be reportable under RTI, if you have an existing PAYE scheme.  If you employ casual staff but do not have an existing PAYE scheme then they are not reportable for RTI. Ensure that you hold a P46 for the current year for each of your staff that are below the LEL to confirm that their tax situation has now changed and if they have not ticked statement "A" they must go on the payroll for RTI

    The Revenue will impose fines on late filing of RTI returns.

    For more information or advice on RTI please contact us.

    Current National Minimum Wage - Adult Rate age 21 or more £6.19 per hour, 18-20 year olds £4.98 per hour, 16-17 year olds £3.68 per hour, apprentice rate £2.65 per hour. Apprentices over 19 but in their first year of apprenticeship £2.65 per hour, apprentices over 19 who have completed at least 1 year are entitled to receive the full national minimum wage rate applicable to their age.These rates are increased on the 1st October every year.

    Annual Personal Allowance - £8105

    Emergency Tax Code - 810L W1/M1

    Tax Bands for 2012-13 - 20% £0 - £34370, 40% £34371 - £150000, 50% £150001 and over

    Pay As You Earn (PAYE) Threshold - £156 per week (£675 per month)

    Statutory Pay Qualification - average weekly earnings (AWE) £107 per week or more

    National Insurance Levels
    - Lower Earnings Level (L.E.L) £107 per week (£464 per  month), Primary Threshold (P.T) £146 per week (£634 per month), Secondary Threshold (S.T) £144 per week (£624 per month), Upper Accrual Point (U.A.P) £770 per week (£3337 per month), Upper Earnings Level (U.E.L) £817 per week (£3540 per month)

    Statutory Sick Pay
    - £85.85 per week up to 28 weeks

    Statutory Maternity Pay - 90% of average weekly earnings for the first six weeks, then for 33 weeks the lower of £135.45 or 90% of their average weekly earnings

    Statutory Maternity Leave - 52 weeks

    Ordinary Statutory Paternity Pay - the lower of £135.45 or 90% of their average weekly earnings per week

    Paternity Leave entitlement - one or two consecutive weeks.

    Additional Statutory Paternity Pay - the lower of £135.45 or 90% of their average weekly earnings per week

    Statutory Adoption Pay - the lower of £135.45 or 90% of their average weekly earnings for 39 weeks

    Statutory Adoption Leave - 52 weeks

    Percentage for Statutory Maternity, Paternity and Adoption Pay Recoverable 92%

    Statutory Maternity, Paternity and Adoption Pay Recovery - 92% or 103% if you are a small employer

    Small Employers Relief Threshold - £45000 annual National Insurance liability

    Statutory Holiday entitlement - 5.6 weeks with a maximum of 28 days per annum (for more information on how to calculate the entitlement please go the the Hotliday Entitlement calculation page.

    End of Year P35, P14, P38 and P38A online  filing deadline - 19th May

    Issue P60’s - 31 May

    P11d, P9d and P11d(b) filing deadline - 6th July

    From May 2010 HM Revenue & Customs (HMRC) have been issuing penalties for late payment of monthly Pay As You Earn (PAYE). Payments MUST be made by 19th of each month.

    As an employer you have a legal obligation to operate Pay As You Earn (PAYE) on the payments you make to your employees even if you’re the only person working in your business. If you run a one-person limited company, you’ll be both an employer and an employee. You will need to calculate both Income Tax and national insurance contributions due to the tax man.

Many Employers do not have checks in place for 'Ghost Employees' on the payroll. Do you make the relevant checks? Do you do head counts? or check that Employees that have left have come off of the payroll run? If paying by BACS do you check for duplicate bank account details. This area is very open to fraud. Ensure you make these checks to safeguard your firm.

Illegal Working
- Do you have checks in place for ensuring your are not employing anyone who is not entitled to work in the UK. For more information please go to the Illegal Working page.


 

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