Real time information: 'iXBRL on steroids'

The imminent arrival of real time information (RTI) for PAYE is causing a degree of unease and debate in the marketplace.

Described by IRIS Accountancy Solutions managing director Phill Robinson as “iXBRL on steroids”, RTI starts in earnest from next April. While HMRC says its RTI pilot scheme is going very well and is inviting more and more employers to join the scheme early, numerous commentators are raising the alarm about widespread ignorance and lack of preparation for the big migration.

Sage attracted a lot of attention with a survey that showed revealed a majority of small and medium sized enterprises are not prepared for the introduction of RTI, and very few see the benefits that it will bring. Only 64% of the 1,000 businesses questioned were aware of RTI and just 10% thought that it would have a positive effect on their firm. In contrast, 43% of respondents thought the changes would increase rather than lessen their administrative burdens.

More recently, tax bodies went public with concerns that there was a risk that HMRC would use the new regime as an opportunity to increase its revenues from penalties for non-compliance. To allay these fears, they called on HMRC to defer levying penalties for a year to give RTI time to bed in.

Drawing on both camps, this article will lay the groundwork for the final push to RTI and offer suggestions for those still struggling to come to terms with it as well as those in the know. In the weeks to come, AccountingWEB will follow up with general “how to” articles, advice for practitioners about the opportunities RTI could present for their firms, and for finance and payroll managers about how to prepare their systems and teams for the RTI regime.

The full article includes further information on:

  • What is RTI
  • What to do next
  • What needs to happen before you go live with RTI.

RTI resources

Continued...

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Comments

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ireallyshouldkn... | | Permalink

Does anyone know yet how to treat the large volume of small limited companies who have one or two directors and paid between the LEL and the Primary Threshold?

It would appear from the FAQ's they will still want monthly nil returns, although there seems to be an opt out to "advise them of a period of inactivity".  Can this be used to make the payroll dormant for 11 months and just put in a single annual return as now?  This of course no longer needs to be in March, but could be at another point.

I keep asking this question as in volume terms there must be more of these than "real" payrolls and filing several dozen 'nil' returns would be a big waste of time.

RTI - Small Payroll

Andrew1946 | | Permalink

I like the above IRSK, run the payroll for two/three Directors who are paid between the LEL and the Primary Threshold and have used the HMRC Basic PAYE Tools and Employers Database, which has been updated on an annual basis. The HMRC software is perfectly adequate for my purpose and provides the necessary completed forms for the annual payroll Returns and employee notification ie P45',s and P60's. Does the new reporting proceedure as outlined for RTI mean the HMRC Basic Tools software will become redundant at the end of the 2012/13 financial year,is it likely it willbe replaced by some other form of software by HMRC, or should I begin looking for some other provider of payroll software for these three emplyees /Directors

    

Basic PAYE Tools

John Snowden | | Permalink

will be RTI enabled, I understand.

Basic PAYE TOOLS

Andrew1946 | | Permalink

JS, thanks this is most reassuring. Could you please let me know whether this is the official HMRC reponse and if so, when are they proposing release the software/upgrade, or whether you have gleened this information from some other source, and thus awaiting HMRC notification

Basic PAYE Tools

John Snowden | | Permalink

Andrew1946,

Among other places, see: http://www.hmrc.gov.uk/payerti/getting-started/payroll-system.htm for confirmation that Basic PAYE Tools are/will be enabled. I am sure I saw it also on a recent Agent Update from HMRC.

 

Basic PAYE Tools

Andrew1946 | | Permalink

JS Thanks agaiin, for the benifit of those who likewise maybe following this topic, I contacted HMRC  - Basic Tools on line service , who confirmed that RTI wll be included in the Basis Tools PAYE upgrade of the software, however no date was given, otherthan it will be in time for the April 2013 payroll reporting deadline! - little regard applied by HMRC, to all the advice being given to emloyers to get their records in line before the big switch! 

puzzel's picture

Are you sure about the dates?

puzzel | | Permalink

I thought it would be the smaller business's that follow on and not be the first to apply RTI?

"All schemes/employers with fewer than 5,000 employees will start to submit RTI in April 2013; those with 5,000 employees or more will start to submit RTI on dates agreed with HMRC between June and Sept 2013"

RTI small Payroll    1 thanks

Andrew1946 | | Permalink

Hi puzzel   Don't quite know who the query was aimed at. I unaware of the reporting deadlines for employers with a payroll in excess of 5000. The HMRC Basic Tools PAYE software I refer to is for those with a payroll of 9 or less employees, which I understand will be upgraded before the April 2013 payroll is run and  RTI  is submitted.

Your statement  in "All schemes/employers " seems to support my understanding, why larger employees have a longer or undefined period to comply, I can only guess is because of the sheer number of employees and  nodoubt the queries involved for alignment of the required information

rti paye

david5541 | | Permalink

Andrew1946 wrote:

Hi puzzel   Don't quite know who the query was aimed at." I unaware of the reporting deadlines for employers with a payroll in excess of 5000."

the only office that will not be able to handle RTI will be the PAYE contact CENTRE-(it used to be different centres- for paye collection; p35 filing penalies and tax codes) now its always the same motley, disempowered, underskilled team who have to to answer the phones to us-who will really pay the price: we already get so many filing penalty errors on p35s.

 

My heart goes out to the staff wh have to answer the phone and have so little influence at HMRC

The HMRC Basic Tools PAYE software I refer to is for those with a payroll of 9 or less employees, which I understand will be upgraded before the April 2013 payroll is run and  RTI  is submitted.

Your statement  in "All schemes/employers " seems to support my understanding, why larger employees have a longer or undefined period to comply, I can only guess is because of the sheer number of employees and  nodoubt the queries involved for alignment of the required information