Real Time Information The webinar will begin shortly Real Time Information Introduction – Peter Bickley Maggie Anderson • RTI Policy Advisor, HMRC • Joined the Inland Revenue in 1988. • Head of the RTI stakeholder Engagement Team. • Founder Member of the RTI development team Steve Wade • Director, International Executive Services, Tax and Pensions at KPMG LLP • Member of ICAEW’s Employment Taxes and NIC Sub-Committee • Main representative for the ICAEW on RTI with HMRC Ask a question • Participate in today’s webinar – send us a question Join the Tax Faculty • Representing 136,000 members • All the information you need – from one place • Interactive Website • Publications • Referral Scheme • Events and networking opportunities • Career development Icaew.com/jointax Agenda • Key Facts • What RTI means for employers • RTI Timetable • Preparing for RTI – key actions to take • RTI Pilot • Help and Support Key Facts • RTI is a priority government programme. It will help to: • Improve the operation of Pay As You Earn (PAYE) • Improve the customer experience for both employers and employees • Achieve sustainable cost reductions for employers and HMRC • Close the ‘tax gap’ • Support the introduction of Universal Credit by the Department for Work and Pensions (DWP) RTI – What it will mean for employers • RTI brings together payroll and payment processes • Employers will tell HMRC of deductions every time employees are paid - by way of a ‘Full Payment Submission’ (FPS) • Changes to starter/leaver procedures • Changes to year-end procedures • Simpler, more efficient PAYE system RTI Timetable Date Event April 2012 RTI Pilot began April 2012 to March 2013 More volunteers to join the pilot April 2013 Most remaining employers to start reporting in real time By October 2013 All employers reporting in real time Universal Credit introduced Preparing for RTI – key actions to take • Update/acquire RTI-enabled software or use a payroll service provider • Ensure employee data is correct and complete • Include new information in your payroll records • Review your recruiting and payroll processes • Be ready for Payroll Alignment submission to align HMRC’s data with yours at the go-live date Update/acquire RTI-enabled software or use a payroll service provider • Do this as soon as possible • Contact your payroll software developer/provider • Consider new RTI-enabled payroll software • Bacs payments – ‘hash’ cross reference required • Free RTI-enabled software products are available • HMRC’s Basic PAYE Tools (BPT) RTI-enabled • Talk to your agent now Employees – new information required • Hours worked • Passport number • Employees earning less than the Lower Earnings Limit (LEL) • Irregular Payment Indicator  Casual or seasonal employees  Employees on leave not to be paid for three months or more Employee data Full name Date of birth National Insurance number Gender Address Tips in recording key employee information Name • Full forenames, not initials • Forenames and surname in the correct order • Make sure they are spelt correctly • Don’t put titles in name boxes Date of birth • Always enter the correct date of birth • Enter the day, month and full year, such as 05/05/1985 National Insurance number • Always enter the correct National Insurance number • Correct format – 2 letters, 6 numbers and a final letter (A,B,C or D) Employee information – get it right • Review recruiting and payroll processes • Check details for your current employees • Correct any gaps and inaccuracies • Contact your software provider • Make use of the help available Payroll Alignment • Takes place just before ‘go-live’ date • Employers supply extract of payroll records • All individuals employed since the start of the tax year to be included • HMRC’s records will be updated to match • NINO verification feedback Recent announcements – have you missed anything? • Large employers and payroll bureaux to be encouraged to start PAYE reporting in real time early to: – avoid End of Year reporting for 2012-2013; and – benefit from more dedicated support • More payroll software providers and products to join the pilot from November 2012 - please contact your software provider if you wish to participate in the Pilot • New PAYE schemes set up from November to be able to submit returns in real time straightaway • Employers who change to software providers with payroll products in the pilot will be able to start submitting returns in real time from the date they change Help and support (1) What? Where? Getting ready to operate PAYE in real time hmrc.gov.uk/payerti/gettingstarted/rti.htm Operating PAYE in real time hmrc.gov.uk/payerti/index.htm Setting up and using the Basic PAYE Tools hmrc.gov.uk/payerti/payroll/pay-anddeductions/using-bpt.htm Using HMRC’s Basic PAYE Tools (non-RTI) hmrc.gov.uk/paye/tools/basic-payetools.htm Help and support (2) What? Where? Data Quality homepage hmrc.gov.uk/rti/dip/index.htm Commercial and free software products hmrc.gov.uk/softwaredevelopers/paye/rt i-software-forms.htm Real Time Information – Generating the RTI Cross –reference (RTI hash) hmrc.gov.uk/rti/cross-reference.pdf Register for email alerts hmrc.gov.uk/paye/formspublications/register.htm Real Time Information Practical Steps – Steve Wade Where are you and your client? Payroll • Paper • Spreadsheets • In-house • Outsourced • Multiple payrolls Talk Software Developer/provide Bureau HMRC Agent / Client HR Payroll Share Administrator/ Benefit providers etc etc On or before Next payroll run remember: On or before On or before On or before On or before Plan Data Cleanse Software Payroll & BACs Training Process Changes including New Hires and Leavers Timing changes It is not just a payroll issue EAS or FPS Plan The clock is ticking, the time is running out. You do not have until October 2013 Any Questions? THANK YOU FOR ATTENDING Contact the faculty: • t 0207 920 8646 • e [email protected] • w icaew.com/taxfac Please take the time to fill out our short survey A world leader of the accountancy and finance profession