Real Time Information: the clock’s ticking
BUSINESSES are being warned to ensure they are taking the necessary steps to allow for the smooth introduction of HMRC’s new Real Time Information system.
From April 2013, employers will need to report employees’ pay and tax details to HMRC at the time they are made. Currently records are submitted at the end of each tax year.
Rawlinsons Payroll and HR department has been involved in a pilot scheme, working with HMRC and its clients to help iron out glitches and develop a strategy for other companies to use.
Manager Sarah Coulson said: “We signed up very early in the process to be involved in the pilot scheme, recognising the importance of ensuring a smooth transition to this new way of supplying important information.
“We have been working with HMRC and clients for several months and are confident we have in place everything necessary to deliver the required information.”
Sarah and her team are filtering back their results to HMRC, along with others involved in the pilot, to allow a blueprint to be created for others to follow. She is now urging other companies to ensure they have in place the necessary processes to remain compliant.
“This is a mandatory change to the reporting of information and companies must be aware of what they need to do to make the switch in plenty of time,” said Sarah. “The government has claimed the Real Time Information system will make it easier for employers, pension providers and HMRC to administer PAYE. Our experience so far suggests that is so. The immediacy of information availability is so common now it does feel like this system is simply bringing HMRC in line with other technology and processes companies utilise.”
Rawlinsons is a firm of Chartered Accountants, Business and Tax Advisers providing a complete range of accounting, business, taxation and specialist services to more than 3,000 clients.
The Peterborough-based firm has seven partners, a 60-strong team and 70 years of history.
This was posted in Bdaily's Members' News section by Angie Bull .
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