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PAYE Archives - Nimbus Accounting


By Nimbus

Real Time Information – What does the employer need to do?

February 21, 2013 | By |

PAYE & RTI – A new way of working:

Being creatures of habit, there is a natural reluctance to change the way we do things. Every UK employer is an unpaid tax collector and from April there is yet another rule which must be followed.  Real Time Information (RTI) is HMRC’s latest innovation to keep track of employees during a tax year, ensuring that the Tax and National Insurance deducted from employees during the year is paid to HMRC as and when it is collected by the employer.

Historically, the system allowed scope for the cash strapped employer to delay PAYE payments during the course of the year – not really in the spirit of the tax system, but the temptation was there and it offered an option that was far cheaper and easier than going to the bank and getting an overdraft. As long as the payments were all in by the time the year end P35 was submitted, and it all reconciled, HMRC would be none the wiser. So RTI will put a stop to that and will mean that the PAYE system that all employers operate will be far more regimented.

So how will the changes affect the employer? The simplest way to explain this is to identify some key areas that will make sure you are complying with the new regulations by April:

1. Ensure your payroll software is up to date

2. Check you have all you employees details up to date

3. Verify you have registered for PAYE online

4. Ensure that hours worked are recorded for each employee

5. Update your payroll software to include all casual staff that previously were not included in the software

6. Prepare to run the payroll each time an employee is paid, including hours worked

 7. Ensure starters and leavers are up to date

If you are reading this because you run your own payroll, or your accountant has not told you about RTI, perhaps it is time to think again. At Nimbus Accounting we engage in a constant dialogue with our clients to ensure they are kept up to date with changes that will impact their business and include unlimited contact in our fixed fees. If you would like to discuss this or any other accounts or tax questions, please feel free to get in touch on 01273 782 712 and speak to one of our qualified accountants.


By Nimbus

Getting ready for RTI

August 29, 2012 | By |

You have probably heard that HMRC are introducing a new method of PAYE reporting. Historically HMRC would receive either monthly or quarterly PAYE payments from employers and would only be able to reconcile these once the employer submitted their year-end return (Form P35). In the past the employers in financial difficulty were able to use HMRC as a creditor, by not paying the PAYE due and HMRC would not be aware of this debt.

HMRC have now introduced Real Time Information (RTI), not quite up to the minute, but real time information month by month. Therefore, from April 2013 or October 2013 (depending on the size of your business) all employers are required to submit their PAYE data to HMRC on a monthly basis. The payment dates remain the same, either monthly or quarterly, depending on the size of your PAYE liability.

There are potentially a few losers with the introduction of RTI. Students will unfortunately lose the ability to earn their full personal allowance in their summer holidays without being taxed! The good news is they will be able to claim back the tax, but will need to complete a Form P50 after their summer job has finished.

So what is all the fuss about? As with all changes in procedures there is a reluctance to adopt something new. At Nimbus Accounting we are well prepared for the change. Our payroll software will automatically transmit the necessary information to HMRC at a click of the button. There are firms, as always, trying to scare clients that there will be extra administration. If this sounds familiar, pick up the phone and give us a call at Nimbus Accounting, we will give you honest straight forward advice in plain English.

If you are based in the Brighton & Hove or Sussex area and want to discuss this, or any other matter affecting your business, please don’t hesitate to give us a call on 01273 782 742. Nimbus Accounting staff are all qualified accountants and have a specialist knowledge of SME accounting and taxation.