Published on Wednesday, November 14, 2012
If you haven't already updated your payroll and Bacs software to cater for RTI, now is the time to ensure you are ready - you have less than 6 months to do so and need to factor in standard lead times from your suppliers. Avoid the last minute rush and possible disruption for your company by preparing well in advance of the April 2013 deadline.
HMRC has put together an internal communication about the use of the Payroll ID Indicator which highlights the impact of supplying a different Payroll ID for the same period of employment. The Payroll ID is used by HMRC to identify each unique period of employment or pension for an employee. Correct use of the Payroll ID is a key element of the RTI process and it is essential to ensure an exact match on each Full Payment Submission (FPS). Any change - even one character - represents a new employment to the HMRC system and will duplicate employee records, resulting in wrong tax codes being applied. It is vital to the smooth running of RTI and PAYE systems that correct information is captured and submitted.
HMRC is also developing an RTI flyer on Payroll IDs plus hints, tips and lessons learned from the pilot, which will be shared with the public in December.
Bottomline Technologies HMRC RTI Updates is an ongoing series about the new HMRC RTI initiative that is being implemented in the UK. As and when new information emerges, an update email will be mailed to those registered to receive them and a new blog posted on the Bottomline Technologies website.
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