RTI – Real Time Information payroll – has been going since April 2013, and not surprisingly we have heard about a number of companies experiencing problems, and one problem in particular, namely where HMRC have been chasing companies for underpaid PAYE, where the companies believed the underpayment was due to legitimate deductions and did not realise that under RTI rules they now needed to process an EPS (Employment Payment Summary).
An EPS is where companies inform the HMRC of any deductions made from the Real Time Information supplied. Such deductions can occur through the Construction Industry Scheme (CIS), which sets out how contractors must pay subcontractors in the construction industry, and through the reclamation of Statutory Maternity Pay, for example.
It is this type of problem that is encouraging a lot of companies to outsource their payroll operation to specialists like JLP Payroll, because they are realising that it is quicker, easier and cheaper to do so, giving them peace of mind that everything is being done correctly. Indeed, for some smaller payrolls it can actually cost companies more for the necessary software and stationery, etc., than we charge to take a payroll over.
RTI will be compulsory for all companies from October 2013
RTI is not compulsory for all companies, right now. Currently, companies employing less than 50 people, who pay their employees weekly, or more frequently, but only process their payroll monthly, are exempt from RTI rules. However, from October 2013, RTI will be compulsory for all companies, so if you are exempt currently, now is the time to prepare your company for RTI compliance. Why wait for things to go wrong? Contact us now. We can help to make sure things don’t go wrong and can put things right if they have gone wrong.