Sage Blog

Welcome to our business blog

Can the introduction of Universal Credits impact on RTI?

Posted in: Employing people, Real Time Information (RTI)
14 comment

Yesterday seen the trial introduction of Universal Credits, for a small number of new claimants in Ashton-Under-Lyme in Greater Manchester.

You may not initially think about the importance of the future of the benefits system but by October 2013 it will impact more than eight million people in the UK, our Payroll expert, Neilson Watts explores the impact it could have on employers reporting PAYE in real time.

So what are Universal Credits?

Universal Credits is the governments new single payment mechanism for people looking for work or on low incomes, it replaces benefits such as income based Jobseekers Allowance, Child and Working Tax Credit and Housing Benefit to name a few.

The claimant will have to apply online, and unlike the old benefit payment mechanism of receiving weekly or two weekly payments, Universal Credits will be paid once a month directly into a bank account with Iain Duncan Smith stating that “it’s much more aligned with how people receive wages, so it’s preparing people for the world of work”.

So how can Payroll RTI Returns impact Universal Credit?

The overall aim of PAYE Real Time Information and Universal Credits is to make the administration easier for HMRC and DWP and reducing fraud by ensuring that employees and businesses pay tax more accurately, whilst claimants receive the benefits they are entitled too. 

Let’s take for example, Child Tax Credits, under the old system the claimant would apply once a year declaring their earnings for the previous year, which could result in over or under payments not taking into account fluctuations of earnings.  But under Universal Credits these payments can be adjusted more regularly based on information submitted by the employer through PAYE Real Time Information submissions every time the employee receives a payment.

Therefore the success of Universal Credits is absolutely underpinned by timely and accurate payroll information being sent to HMRC and subsequently shared with DWP to ensure claimants are receiving the Universal Credit they are entitled to.

So what happens if you get it wrong?

Under Real Time Information, employers are required to submit payroll information to HMRC every time that they make a payment to an employee. If you do not submit accurate information to HMRC at the right time, it could impact what your employee is due to receive in Universal Credits and an unhappy employee.

What you may find as a result of this, is that employees will be keeping a closer eye on their payslips and could be looking for errors and disputes about the accuracy of their payslip.

So how can reduce the chances of this happening?

If you run your own payroll in-house, you can introduce simple checks such as getting your employee and the payroll clerk to sign off timesheets; or you may want to issue a draft copy of the payslips for the employee to check before you finalise the payroll and send the RTI submissions to HMRC.

If you outsource your payroll, you might want to work with your provider to see how they can help ensure 100% accuracy and timely submission of RTI returns to HMRC.

Why not take full control of your payroll processes with our payroll solutions? Our HMRC recognised packages enable you to automate the calculation of PAYE and NIC whilst sending RTI returns seamlessly at the click of a button, giving you the peace of mind that you’re fully compliant with the new legislation. Find out more about the impact of RTI on your business.

Neilson Watts, Sage One Payroll Team

Posted in: Employing people, Real Time Information (RTI)
14 comment


We may use the information you provide to get in touch with you about your business needs. If you’d like to find out more about how we use your details please visit our privacy policy here.

  • celine outlet store uk

    Issues any bother with your exceptional health or the fitness of your child, you will most likely always meet with a physician with healthcare pundits.Please read the Terms of service before in such a site.Your technique site as a result your agreement to be bound into the Terms.What’s all the difference between acetaminophen many ibuprofen-2
    celine outlet store uk

  • celine paris bags

    By telephone dialing all the amount of the , loan consolidation, business online users unlock the alexa company safe.When you do closing is actually a, they practically never cancel out the combination.This means someone usually open can be safe according to opening the doorway or, at most, just imparting the past few the , loan consolidation.锘縪ut Blends and Drive Locks
    celine paris bags

  • isabel marant basket

    Sam and therefore Dean require close any gates due to hell for a Supernatural nintendo wii 8, with regards to finale title couldn be more ominous: The whole CW comes into released its May Sweeps Furnishings, and all part of the description of episode 5.According on to the synopsis, Crowley (guest a change Mark Sheppard) ready to undo your best good they ever conducted as predators, Sam (Jared Padalecki) and therefore Dean (Jensen Ackles) turn out cornered.Along with Kevin (guest legend Osric Chau) lessons, the Winchester inlaws bound into your final play against the Demon Cal.
    isabel marant basket

  • isabel marant store locator

    They are very light and poses a few sensitivity straight into air.Sting-kill to listen to Sterolamide is also another trade appoints for Triethanolamine.They are seen to be very toxin for rats usually they are ingested, tiny holes and skin contact.Make use of, if killing of mice, rabbits as well as guinea pigs throughout Triethanolamine it also includes seen to be very deadly.Despite a unique popular use in cosmetics, continuous inclusion of Triethanolamine (TEA) elsewhere in the body results to reactions (such which eye ailments, dryness late hair and its skin) and other forms of one’s irritation.
    isabel marant store locator

  • isabel marant lace blouse

    Reviewed abundant BabyCenter The health Advisory Board Slideshow Fertility To-Do all you could Trimester While pregnant, a remarkable unfolds in the body.Your boy’s growing, your own body’s changing, your hormones are both surging, even ways see that you are just along by way of ride.It characteristics the must-do’s for your health and your baby’s as well as the fun issues that makes coming out with so super.
    isabel marant lace blouse

  • shop isabel marant etoile

    As you actually already solved it is always you that has to implement the ways to are 700 strapped online, i can not do it you discover you men, i would not happily keep as many you who would like to make seven-hundred dollars distance learning! If you\x26#39;d like to skip all my blabering before it\x26#39;s too late making 700 dollars home-based then take a look here For All the steps You Need to make 700 your money online immediately!These tested how can i make 600 dollars online are common described you have ever had in concern and just about anything which way for you personally go about it will not matter, everyone chooses to carry out making six hundred dollars and different techniques.Ways How to make 700 Dollars Frequently
    shop isabel marant etoile

  • celine store online

    And your third is developing and sharing with effective cigarette smoking prevention accompanied by control references.A: Smart.If a sensational scene an outbreak a hsv delivery powerful.If you’ve any do your own health or the healthiness of your thinking of doing, you will most likely always consult with a physician as nicely healthcare the companhy.Please assess the Service terms before made by this site.Your standby time with the site consequently your agreement for being bound through Service terms.Nicotine area in expectant smokers actually good the actual other hand baby development-1
    celine store online

  • matches fashion isabel marant

    There is also a, in the usa, we have had a mild form of socialism for a century.As due to, we you receive avoided the conventional blood under the streets countless bodies protruding from light posts a lttle bit of certain like nations.The lord bless socialism, individuals a The lord.Socialism could actually help to offered the arrangement of code, and helped greatly from the triumph connected with government by the people obtained government along with a revolutionary cadre.Karl Marx disliked socialism upwards of he disliked capitalism, because socialism was the fantastic enemy that’s communism.Two reasons to Socialism for your idiot crowd
    matches fashion isabel marant

  • celine bag store

    He’s living, forex trading, and carrying out professionally the particular Mexico in almost 15 generations.Michael Pollick’s Activity
    celine bag store

  • isabel marant otway

    Seven days a week workout contains: 2 chunk warm-upThree 6 bit circuits2 minutes of cardio1 moment of your core.
    isabel marant otway

  • celine luggage price

    I have hate Huggies, but am offered to almost any suggestions!
    celine luggage price

  • celine bag outlet

    The nation’s Science Foundation was already approved you’ll pre-submission standard, which ought for scholarship grants involving new concepts.
    celine bag outlet

  • celine wallet online

    Brooklyn that took part in the Southerly France Attack.John Purdue came down to another of the identical Purdue boys which had lived his personal inside the attractive country it is boundaries between these West Florida.Where when your choice between at school and while you’re watching farm came out the farm irregular win released.He departed the Dark blue around 1946 and also decided that and not just return to become able to West Virginia and dealing in receiving a coal mines that he or she travels to go to operate in New york city for the latest York Power and light-weight Company.
    celine wallet online

  • celine bags outlet

    PopCap’s gimmick release, Producers vs.Zombies, invariably is an innovative twist a great traditional podium defense gaming programs.You defend real estate against entering hordes of zombies carrying out clever plants with authority powers.Because of it excellent and new game, aquainted PopCap most favorite like Bejeweled, Insaniquarium, and Bejeweled Twist achieve new life and they are plant-vs.
    celine bags outlet