New HM Revenue & Customs Reporting System For Pay and Tax Details
In April 2013 a new system of reporting pay and tax details to HM Revenue and Customs (HMRC) is to be introduced. Under the new system, known as Real Time Information (RTI), employers will 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. This will also see the end of manual payroll systems.
HMRC hopes that RTI will help them to operate more efficiently and accurately as the aim is to ensure individuals pay the correct amount of tax and NIC during the year, and also to support the introduction of the Universal Credit in October 2013 by providing up-to-date details of an individual’s employment income.
Blue Sky recommends that businesses think about what RTI means for them and prepare early to ensure they continue to pay employees and HMRC on time. Alternatively, they can contact the Blue Sky team of friendly, professional and experienced advisers for a free no obligation review to discuss their requirements in more detail and find out how Blue Sky can help them.