RTI – Questions Answered
Here we detail the responses for you.
When do employers have to start undertaking submissions for RTI?
Employers with fewer than 5,000 employees in all PAYE schemes, who are not part of the RTI pilot, will be expected to start their ongoing Full Pay Submissions (FPS) from their first payroll process undertaken from 8 April 2013 onwards; remaining employers from June 2013.
The first payments for the new tax year 2013/2014 may credit from 5 April (6 April is a Saturday) and it is common for payroll to be processed two to three weeks prior, however, HMRC have confirmed that there is no requirement to hold back these payrolls, only those that are processed from 6 April 2013 onwards are required.
What happens if information changes after submissions are made? Do I have to submit another FPS?
The fundamental requirement is for the year to date figures for the latest RTI submission to be as accurate as possible. HMRC and DWP will use the most recent year to date values to update their systems. To minimise the burden on employers we do not require a separate correcting or amendment FPS for the period being corrected.
If late information necessitates an additional payment being made to an employee, outside of the regular payroll cycle, this payment should be treated as a new payment and reported under RTI in the same way as any other payment.
If the late information is about a payment that has already been made to an employee, then the information should be included in the year to date figures sent with the FPS for the next relevant payroll. An additional FPS with information about this payment is not required.
The Ceridian RTI Electronic Exchange service supports this method of operation.
What happens if an employee changes their name and address?
Even with RTI, it is still the responsibility of the employee to inform the HMRC of any changes. It is important that you communicate with employees to let them know what process they need to take.
What do you actually have to do for RTI?
The answer is very little. Some software systems and services, including Ceridian’s, will automatically undertake submissions without any intervention. How time consuming RTI will be is really dependent on the payroll service you use.
You do however need to make sure that you are registered to use the service and have confirmed company information with your payroll provider.
Simon is currently chair of IReeN, the electronic exchange with government user group, a member of the HMRC RTI Customer User Group and has over 13 years experience in electronic exchange systems.