Too many Midlands SMEs are sleep walking into a potential disaster by ignoring the demands of Real Time Information – the new HMRC payroll rules that come into force in April 2013. – according to audit, tax and advisory firm Crowe Clark Whitehill.
Partner Guy Morgan, who heads up the Midlands Business Solutions group, said that with less than a month to go, many firms were woefully ill-prepared for what has been described as the biggest change to PAYE since 1944.
“From April 2013 there will be a new way to report PAYE information in real time – Real Time Information (RTI),” he said.
“PAYE itself will not change – just the way, and how often, you send PAYE details to HM Revenue & Customs.”
To help smooth the path Crowe Clark Whitehill is holding two seminars – “Real Time Information – are you ready?” on one day at 9am and 11.30am on Tuesday, March 19.
HMRC is introducing PAYE RTI to improve the operation of PAYE for employers and employees and to provide accurate records on wages and tax for the forthcoming Universal Credit, sothat eligible employees will get the right amount of benefits.
Employers will be required to submit personal employee data electronically on or before each payday. Accurate employee information will be required, as inaccurate information could mean delayed payment of Universal Credit to employees but also mean penalties for employers.
Guy Morgan said: “Under PAYE RTI, the information you submit to HMRC when ou pay your employees, rather than yearly as before, will be matched against HMRC’s records.
“If the records you submit do not align with HMRC’s, this may trigger the creation of duplicate or inaccurate records which could result in incorrect tax calculations or HMRC compliance checks.
“Your data quality could make or break the success of RTI for you.
“Under RTI you will be submitting more often, with tighter deadlines.
“More than ever before, the name, address, date of birth and gender of employees will be very important so employers must ensure that their data is clean and correct,” he said.
Areas businesses will need to look at include obtaining full data for new starters, upgrading payroll software and reviewing payroll and payments processes.
Crowe Clark Whitehill’s national payroll processing group is based at the firm’s Midlands office at Black Country House in Oldbury.
Guy Morgan said: “Our Payroll Group offers fully managed payroll solutions to businesses, designed to meet individual needs. Our tailored service is suitable for any organisation regardless of size.”