RTI question

RTI question

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Hello,

I am looking at the following sequence of events:

1) Running normal payroll for a company at the end of March for normal March salaries

2) The company will know on 1st or 2nd April about a deal that would enable it to contemplate a bonus to a director on 1st/2nd April into its new tax year.  But it won't be in a position to make a bonus decision on 31st March, its year end.  However, the director has been very patient remuneration wise, and if it is possible the company would like to make an immediate bonus payment as soon as it knows the outcome of the deal.

3) Then normal payrolls would be run at the end of April.

So there would be two pay runs in April, but one would be a 13th pay run in the current tax year, and one would be the first pay run in the next tax year.

Is this possible with rti?

Thanks!

Replies (5)

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Euan's picture
By Euan MacLennan
11th Feb 2014 16:53

Yes - it is possible with RTI

... but perhaps not with your payroll software.

Under RTI, an FPS report is required on or before the date of every payment to employees, so there can be no restriction on multiple FPS reports in a month (as indeed there will be with weekly payrolls).  Every FPS report includes YTD details.  The final FPS report of the tax year should include the End of Year confirmations.

I do not know about HMRC Basic PAYE Tools or Sage, but Moneysoft does not currently permit more than one FPS report for the specified pay frequency.  Instead, it defaults to adjustments being processed in the following FPS report via the YTD figures.  That is no help with the Month 12 FPS.  However, it might change from April 2014.

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By dnicholson
11th Feb 2014 17:16

Replacement
When you file a second (or subsequent) FPS for a tax period it replaces the one you first filed, be it week 52 or month 12 or any other tax period. So you just rerun with the bonus and refile. Other software lets you do this.

(Future period repeat filings have some subtle complications, but still work.)

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By petersaxton
11th Feb 2014 19:50

"So there would be two pay

"So there would be two pay runs in April, but one would be a 13th pay run in the current tax year, and one would be the first pay run in the next tax year."

I'm not sure whether you understand but payroll periods run from 6th of one month to 5th of the next month.

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By the_drookit_dug
11th Feb 2014 20:28

We use Sage...

... and pay salaried staff on 25th of each month and hourly staff between the 1st and the 5th of the following month, by which point total hours worked are known.

We've never had an issue with RTI - we just submit two FPS files during each PAYE month.

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By garyging
12th Feb 2014 10:20

What is the date of the bonus?
If it is actually being paid after the 6th April then it should be processed as a payment in mth1 of the new tax year, not for mth12 of the previous year, so you would potentially be doing two FPS's for April, one for the bonus and the other for the normal April pay run.

As mentioned in a previous reply, you can do multiple FPS's in the same tax period within Sage Payroll software, the first would be your FPS, subsequent ones would be FPS adjustments.

Regards
Gary
Sage (UK) Ltd

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