Are you ready for Real Time Information?

Trials for Real Time Information (RTI) will be taking place from 2012, and by October 2013 it will be mandatory for all businesses to process PAYE data using the new system. Make sure your business stays up to date and is ready to comply with the upcoming changes in legislation.

  • Real Time Information (RTI) - are you ready?What is RTI?

    Real Time Information, or RTI, is a new system that's being introduced by HMRC to improve the operation of Pay as You Earn (PAYE). PAYE information will be collected more regularly and more efficiently when employers submit their regular payroll submissions.

    RTI is one of the biggest changes to PAYE since it was introduced in 1944, and will ensure PAYE keeps pace with modern working patterns.

    Under the HMRC RTI system, employers would be required to send data about PAYE, NIC and student loans every time they pay their employees, rather than with their end-of-year tax return. HMRC hopes that RTI will help them to operate more efficiently and accurately.

    It's important to start preparing now for RTI. Although RTI will be a highly-automated process, with reporting to HMRC embedded into an employer or pension provider's payroll software, you need to think about what RTI means for your organisation, how you run your payroll and your business processes.

  • How will it affect your business?

    Instead of sending information once a year at Payroll Year End, you'll need to submit information electronically to HMRC for PAYE, NIC and student loans etc. every time you pay your employees.

    To help our SageCover customers, Sage and HMRC are giving you the opportunity to come on board early before it becomes mandatory in 2013. We strongly recommend that you make sure you get the support you need by making the changes early. It will become mandatory from October 2013 and you can have the opportunity to make the transition as early as either November 2012 or March 2013.

    We'll be ensuring that all customers with a valid support contract will get access to an updated version of their Sage Payroll software that will include the ability to submit Real Time Information electronically to the HMRC using our existing proven Sage Internet Submission technology.

    The good news for our SageCover customers is that we'll ensure that you have everything you need to keep you compliant and support you through the transition.

  • Make sure you're prepared for RTI

    From November 2012, HMRC will be allowing employers to get ready and compliant for Real Time Information before it starts to become mandatory from April 2013. We'd like to offer our customers with valid support contracts the fantastic opportunity to get ahead of the crowd and be ready for RTI compliance before you are mandated to do so...

    With every business in the UK expected to move to RTI between April 2013 and October 2013, it makes sense to prepare your business early. Taking control and adopting RTI early will enable you to understand what it means to you and your payroll practices, ensuring that you continue to pay your employees and HMRC on time, whilst also having access to the help and support your business may need to transition smoothly into the RTI world of Payroll.

    Adopting RTI early will also simplify your Payroll Year End procedures with you no longer needing to submit P35 and P14 end of year returns...
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    Where do I sign up to adopt Real Time Information early?

    Join the growing number of Sage customers who can see the benefits of adopting Real Time Information early from November 2012 will have on their business...

    • Get access to help and support from Sage before everyone else
    • Get your business ready for the changes before it's compulsory to do so
    • Simplify your Payroll Year End procedures and ensure your employees continue to be paid on time

    To register your interest you'll need to have a valid support contract and fill in a simple form which we will need to pass onto the HMRC. If HMRC select your business to participate, they'll contact you with further information.

    Sign up now >
     

  • Employers

    Getting your data ready for PAYE Real Time Information

    With the introduction of Real Time Information (RTI) fast approaching, now is the time to make sure the information you hold about your employees is correct.

  • Why it’s important to make sure your data is accurate

    HMRC state that over 80% of data quality problems are caused by holding incorrect information about an employee’s name, date of birth or National Insurance number.

    Under PAYE Real Time Information, the information that you submit to HMRC every time you pay your employees is matched against records HMRC store on their National Insurance and PAYE Service (NPS). If the records you submit don't match, you may trigger creating duplicate or inaccurate records which may result in incorrect tax calculations or HMRC compliance checks.

  • What can I do to prepare for Real Time Information?

  • To make sure you have the correct details for your employees, wherever possible check the information you need from an official source.

    Find out more about getting your employees' information correct in preparation for RTI
     
     
    Make sure you get employee information from an official source:
    • HMRC or Department for Work and Pensions documentation
    • A passport
    • A birth certificate
     

  • Simple do's and don'ts of recording employee information

  • Employee name

    FACT - There were over 500 submissions of employees called A.N Other submitted to HMRC!

    DO - enter the employee's full forename and surname.
    DO - enter a double barrelled forename or surname in full.
    DON'T - use known as, for example, if HMRC know the employee as 'Robert' don’t use 'Bob'.
    DON'T - enter an initial in either the Forename or Surname boxes.

    Date of birth

    FACT - There were over forty employees over 200 years of age submitted!

    DO - enter the correct date of birth and ensure it's in the format DD/MM/YYYY, for example 05/05/1985.
    DON'T - enter a default date of birth, such as 01/01/1901, or make one up.

    NI number

    FACT - There were 2,000 employee submissions with a National Insurance number of AB123456!

    DO - only enter an employee's correct National Insurance number.
    DON'T - make up an employee's National Insurance number.

  • If your employee doesn't know their National Insurance number, encourage them to check any documentation they may have received from HMRC or the Department of Work and Pensions (DWP). If they still can't locate it, they can download Form CA5403 from HMRC, or they can phone the Registration Helpline on 0845 915 7006.

    If the employee has never been issued with a National Insurance number, they should phone Jobcentre Plus on 0845 600 0643.

    Important: For further advice on data quality, please visit HMRC's website.

  • What about Accountants and Payroll Bureaux?

    You're integral in ensuring your clients' employee information is accurate, and failure to ensure this may impact on getting their payroll paid on time.

    Tip 1

    Familiarise yourself with RTI and take a look at the processes you use with your client, for example taking on new employees or updating existing employee information. Ensure that your clients provide you with accurate data.

    Tip 2

    Communicate with and educate your clients about RTI and how it's important their data is accurate and delivered on time.

    Tip 3

    Sign yourself and/or your clients to the Early Implementation for RTI to get additional support and assistance from Sage before it becomes mandatory for all businesses in the UK.