What is being regarded as the biggest change to PAYE reporting since becoming part of the administrative DNA of business and pension providers more than 60 years ago is the focus of an employment tax briefing in Southampton.
The South Coast office of accountancy and investment management group Smith & Williamson is hosting the morning event at the Best Western Chilworth Manor Hotel next Tuesday (October 23).
Known as Real Time Information (RTI), the new arrangements will be rolled out by HM Revenue & Customs (HMRC) to all employers and pension providers between April and October 2013, here in the South and elsewhere.
The vast majority of employers will be required to make their first submission of their payroll information in April 2013.
Under the new reporting requirements all employers and pension providers will have to submit RTI data each time an employee is paid.
“RTI is set to have a major process impact upon HR and payroll teams across thousands of firms in the South – it is an important issue for bosses to get their heads around as soon as possible,” said Paul Tucker, a partner at Smith & Williamson and a keynote speaker at the event.
“This is the biggest shake-up of PAYE since 1944, the year it was introduced to become part of the administrative DNA for businesses and pension providers across Great Britain.”
RTI will provide HMRC with details of the amount of tax, National Insurance and other deductions each time your employees are paid rather than after the tax year end, which currently happens with PAYE.
Smith & Williamson’s seminar spells out how HR directors and payroll managers should prepare for RTI, with a guest speaker from HMRC providing an update on developments.
HMRC says the RTI process for PAYE will be simpler because year-end forms such as P35 and P14 won’t be required, employers won’t need to send in P46s (employee starter) and P45 (leavers), and it will be able to check PAYE calculations are correct in a timely way rather than after the end-of-year process.
The seminar will also look at how employers should handle a PAYE visit and, where mistakes are found, how HMRC will invite the employer to settle any tax and National Insurance liability rather than employees, with interest and penalties.
