Real Time PAYE InfographVID from JLPayroll and SAGE
March 28, 2014
This infographic was produced by Sage
REAL TIME PAYE and HMRC
This Infographic dates back to early 2013, but the subject while old is still topical, because today you just have to make sure that you are supplying the HMRC with this ‘Real Time Information’ as otherwise even now you could be in for trouble.
When the graphic was produced, it showed that the new system started on the 6th April 2013 and that EVERY TIME you pay an employee after that date you need to send PAYE info to the HMRC, not once a year as it had been.
It seems that the research that SAGE (the providers of the data) showed that some 72% of all employers were unaware of this change in the payroll process, quite a shocking level if true and one that showed that perhaps HMRC had not done well enough in informing businesses about the change, or at least had been ineffective in getting the message across. with 1.4 million small businesses in the UK being affected, you can see this change was a BIG one.
The detailed resarch into the RTI situation also showed that nearly a quarter of very small businesses were not using any sort of payroll software and therefore could not be RTI ready, which in effect meant the end of manual record keeping.
The last section of the Infographic covers the issue of the data you need to supply. All of it is mandatory and there is no way of getting around it, you just HAVE to supply it, or risk penalties.
One interesting fact was that because of incomplete data, HMRC has 40 employees on record as being over 200 years old, something that I just think is untrue.
Still a year on things seem to be going OK, companies like JLPayroll being able to assist businesses in coping with the new system and keeping them out of trouble with the authorities.
I do hope you enjoyed this InfographVid, courtesy of Sage and JLPayroll