Reporting real time information on PAYE

Posted on November 19, 2012

The move to reporting information in real time is the biggest change to the operation of PAYE in over 60 years.

Between April 2013 and October 2013, virtually all employers will start reporting payroll information to HMRC on or before every payday – instead of after the end of the tax year, as now. These reports will be made online using payroll software – and you’ll no longer have to separately report new starters and leavers, or send in certain end-of-year forms.

So what are the essential facts you need to know?

Reporting PAYE information in real time is mandatory.

Most employers and pension providers will move to reporting PAYE information in real time from April 2013.

You need to consider your options for payroll. A wide range of commercial software designed for real time reporting will be available from April 2013 to suit employers’ individual requirements, including some free products. HMRC’s Basic PAYE Tools will also be available for employers who have nine or fewer employees.

Getting ready to operate PAYE in real time

To get ready to operate PAYE in real time, here are some things you now need to think about:

Having payroll software that will allow you to submit PAYE information in real time – or getting a third party to do it for you

First, it’s essential that you arrange to either update your current payroll software or – if you don’t use software at the moment – that you get software which is capable of sending PAYE information in real time. You should do this as soon as possible. Alternatively you might want to think about using Garratts to do the reporting for you.

If you don’t currently use payroll software, you need to plan ahead now so that your business will be able to submit PAYE information in real time when required to do so. You must send this information electronically – but it can’t be done via email or by filling in a form on a web page. Instead, you’ll have to use payroll software that can send your PAYE reports to HMRC directly and you’ll need an internet connection.

If you don’t want to make PAYE returns yourself, you can ask Garratts to operate your payroll for you and to send the information to HMRC in real time.

If you would like to discuss this further please do contact us. We look forward to hearing from you.

For further details regarding Reporting real time information on PAYE, or if we can advise on other issues regarding your payroll, please contact Garratts.

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