Employers – a revolution is coming

By now most employers should be aware that from April 2013, HMRC are introducing a revolution in PAYE (called RTI) as businesses will be required to report PAYE information in real time. This means that information about all PAYE payments needs to be submitted to HMRC online on or before staff are actually paid, rather than at the end of the year as they are now. PAYE details will be submitted electronically by means of an FPS (Full Payment Submission).  The infomation required on each FPS is very comprehensive.

As HMRC have apparantly piloted this scheme with very large employers it does not appear to take account of real world situations such as employers who pay weekly but run a monthly ‘wash-up’ payroll. Or indeed employers who make errors and run their payroll again in month to correct them. The new rules simply do not take account of these very real and far from uncommon situations.

Given the difficulties that this will create it is at least a blessing that for 2012/13 and 2013/14, only late end of year returns will be subject to penalties.  There will be no penalties if in-year Full Payment Submissions (FPSs) are submitted late.  However penalties for inaccurate in year submissions for 2013/14 will apply as will penalties for late payment of PAYE/NICs

You can find more details on a dedicated area of HMRCs website.