Anderson Barrowcliff warn employers on payroll changes ahead
Tees Valley firm of Chartered Accountants Anderson Barrowcliff are warning employers that from April 2013 there will be one of the most fundamental changes to the operation of payroll since the introduction of PAYE in 1944.
The firm which is based at Teesdale South is encouraging businesses to get familiar with the changes to the operation of payroll, known as Real Time Information (RTI). RTI requires employers, or their agents, to make payroll submissions to HM Revenue & Customs (HMRC) each time they pay their employees. These submissions will contain details about payments and deductions from employees.
Nick Upton, Partner at the firm, commented “The Revenue has put the onus on employers to understand their responsibilities and the requirements of RTI so they are well prepared for the HMRC’s implementation of the new regime.”
“Employers that fail to be proactive in making the changes may incur some large penalties for non-compliance or incorrect operation of the scheme.”
The introduction of RTI aims to make the information that HMRC receives more contemporary. HMRC’s current system does not collect details of employees’ pay and deductions until the information is submitted at the end of the tax year.
HMRC have started sending leaflets to employers regarding RTI that will be followed with ‘invitations’ to join the regime in January and February 2013 which cannot be declined.
Mhairi Charlton, a Senior Tax Manager with the firm, commented: “The payroll bureau at Anderson Barrowcliff has been busy since the start of the tax year, preparing for the changes which RTI will bring to ensure that there is a seamless transfer onto the new system.”
“The RTI scheme is fast approaching and is set to overhaul the way employers interact with HMRC in relation to payroll. The Revenue expects employers to conform to the changes.”
Anderson Barrowcliff is hosting a free ‘Introduction to RTI’ seminar on the 20th November at the Riverside Stadium in Middlesbrough. This should give employers sufficient time to digest the information provided at the event and get ready for the commencement of RTI in April 2013 when it will be mandatory for employers to provide HMRC with details of their payroll. Delegates must register on the firm’s website.
Visit the Events page on the Anderson Barrowcliff website www.anderson-barrowcliff.co.uk for further details.
This was posted in Bdaily's Members' News section by Anderson Barrowcliff .