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RTI (REAL TIME INFORMATION)
As an employer you will probably be aware that HMRC are about to introduce major changes in the way employee information is submitted to them.
This is known as RTI and will result in HMRC receiving information in ‘real time’ as payrolls are prepared instead of the current P35 annual submission.
The principle aim of this move is to support the introduction of Universal Credits in October 2013, a government drive that is only possible if pay related information is available in ‘real time’.
Employers will be required to submit a file to HMRC every time payroll is run and payments made to employees. Initially this information will be relayed via the Government Gateway or the EDI channel. The longer term goal is for this information to be relayed via Bacs. If you are a client of MLR Payroll Services Ltd then this task will be undertaken by us although all clients with a Service User Number will need to generate a hash to accompany the RTI submission and a 4-digit reference to accompany the payment submission. This is mandatory and forms part of the new legislation. Pre-determined data from the payment submission will then be validated against the RTI file and updated accordingly.
The current timeline published by HMRC can be found below:
- April 2012 - Pilot customers begin submitting RTI data (5 employers)
- May / June 2012 - Main pilot customers come on board (300 employers) - hand held
- July 2012 - A further 1300 employers may volunteer to join the pilot - not hand held
- November 2012 - Early adoption will commence with circa 250,000 employers
- April 2013 - Mass migration commences focused initially on large (250+ employees) and medium (50-249 employees) sized employers
- August 2013 - Small employers (<49 employees) begin submitting RTI
- October 2013 - All employers submitting RTI data
RTI is mandatory and all employers have to submit in this way by October 2013
MLR Payroll Services Ltd uses Star Payroll Professional which is fully able to support the RTI upgrade and has clients participating in the pilot scheme.
For this scheme to work, the data submitted must be complete and in the correct format. The four key pieces of information are:
- Name - correctly spelt and formatted
- Address - correctly spelt and formatted
- Date of Birth - do not use a generic date
It is essential that all this information is collated and ready for the initial ‘upload’ to HMRC. This will form the basis of the data file held by HMRC to be updated as each payroll run is made and the accompanying RTI file submitted.
Eventually certain payroll forms will be phased out as information is submitted via RTI and year end returns will no longer be required. However P60’s will remain.
RTI submissions will be required every time a payroll is run, be it weekly, fortnightly, monthly or any other pay frequency. Late adjustments to employee pay will need to be advised to HMRC and exactly how this will work will become clearer as the pilot gets under way. MLR will liaise regularly with Star Payroll Professional to see how things are progressing and update our clients accordingly.
If any employers would like to volunteer to take part in the pilot before the mandatory date then please contact us.
Mon - Friday 9.00am- 6.00pm
MLR Payroll Services Ltd
Brick Kiln Cottage,
The Avenue, Heriard,
Near Basingstoke, Hampshire,
Tel: 0844 8008478
You can contact us on the following telephone number if you have any queries or wish to discuss our services in more detail:
Tel: 0844 8008478