News > General News

HMRC urges licensees to prepare for PAYE system shake-up

By Adam Pescod , 07-Jan-2013
Last updated on 08-Jan-2013 at 12:09 GMT

Related topics: General News

Licensees are being urged by HM Revenue and Customs (HMRC) to prepare for major changes to the PAYE system which come into effect in three months’ time.

HMRC urges licensees to prepare for PAYE system shake-up

From April, employers will have send PAYE returns electronically to HMRC, using new Real Time Information (RTI) software, each time they pay their employees as part of routine payroll processes.

The returns will include details of all employees’ pay, tax and deductions. This new process will replace sending a separate return at the end of the year.

In order to prepare, licensees are advised to take the following steps:

1. Visit HMRC website at hmrc.gov.uk/rti for comprehensive information about RTI, including how to prepare, payroll software options and hints and tips to help avoid some common pitfalls.

2. Acquire new or updated payroll software – employers will need to talk to their payroll software provider or their payroll service-provider (if they have one) about this.

3. Start checking and updating employee information. It’s vital that the information employers have about their employees is accurate and up to date.

Ruth Owen, HMRC’s director general personal tax, said: “To avoid a last minute rush it’s vital employers act now, if they have not already done so.
 
“Employers will need to send their first return – called a ‘Full Payment Submission’ or ‘FPS’ for salary or wage payments made to employees on or after 6 April – and if they have 250 or more employees they will have to send an Employer Alignment Submission before the first FPS.

“Although reporting PAYE in real time will be straightforward for most, some preparation is needed. There is more to it than simply buying or updating software – although this is key.

"Employers may need to add employees such as casuals or those below the Lower Earnings Limit to their payroll system and must think about their payroll practices to make sure that they work for real-time reporting.”

Find us on Facebook

Spotlight

Dealing with Enterprise Inns: A cautionary tale

Dealing with Enterprise Inns: A cautionary tale

I’ve always wanted to run my own pub! “Can we? Can we? Can we?” I excitedly asked...

Punch Taverns and the pubco tie - my experience

Punch Taverns and the pubco tie - my experience

One of the things I was always cagey about when writing about the Gunmakers back in 2009...

menu ideas
MENU IDEAS

Seven ideas for bar snacks

Sheila McWattie looks at how pub caterers are maximising the opportunity for bar snacks in their pubs

thanksgiving ideas
EVENT IDEAS

Celebrate.....Thanksgiving

PubFood looks at how licensees are driving trade around Thanksgiving later this month

Follow us on