Are you paying yourself in real time?
Real Time Information (RTI) is HMRC’s new system for recording and paying tax and NI to HMRC for all salary payments.
Are you affected?
If you have a limited company and are paying salary to yourself or your employees, then yes you are. All companies should currently be using this system and from the beginning of the next tax year there will be penalties for non compliance.
Before each time salary is received, details have to be sent to HMRC online and these have to be sent in a prescribed format, with specific details about taxable gross pay, all deductions, the actual pay date, the weekly hours worked and the number of pay periods covered.
And by 22nd of the following month you need to ensure that the tax and NI is paid and received by HMRC – normally by electronic banking using your company’s unique reference.
RTI is the biggest change to PAYE processes since 1944 and can certainly present a considerable challenge for small businesses.
For more information on RTI and how you can get help for your business, please visit the Competex website.
Wendy Church is the Client Liaison Manager for specialist accountancy practice Competex Ltd, which has been providing company formation and accounting services for consultants and interim managers since 1998.
