Farmers Weekly’s Business expert Mike Butler gives advice on keeping up with HMRC’s real-time information submissions.
Q I understand HMRC has introduced new deadlines for real-time information submissions of PAYE information. What do I need to do?
A PAYE will still be processed in the same way but submissions to HMRC now need to be made electronically on or before the day employees are paid.
Until now the rules on reporting have been relaxed as employers get used to the new system, but from October employers will need to notify HMRC on time or face automatic penalties starting at £100.
If you don’t make any payments you must still submit an Employer Payment Summary (EPS) showing “no payments made from X to Y” detailing the dates where no employees were paid. EPS’s must be filed by the 19th of each month and penalties apply for non-compliance.
If you discover you have made an error in an RTI submission for the current tax year you may correct the error by making an additional FPS (Full Payment Submission) so over the whole period the correct amount of PAYE has been paid.
A correction can be submitted up to the 19th April following the year end in which the error occurred. However, if you discover an error in a previous tax year and have passed the 19th April deadline you are required to submit an Earlier Year Update (EYU) to amend the original figure.
Following a FPS submission, HMRC can see how much is due and this must then be made by the 19th of the following month. Where payments are made late penalties will apply.
Aside from the normal pay details it is extremely important to ensure that all employees details held on your payroll system are accurate. Dates of birth and national insurance numbers should be correct to ensure contributions are allocated correctly and for auto-enrolment schemes they will be linked into RTI so ensuring details are correct now may save time later.
The information provided in these articles does not constitute definitive professional advice and is provided for general information purposes only.
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