Sage RTI Surgery with Helen Hargreaves
Sage RTI Surgery
29 April to 03 May 2013
Throughout this week Sage are working with AccountingWEB and Helen Hargreaves, Senior Policy & Research Officer at the CIPP to answer Sage customer’s questions on the tricky details of RTI. Below is a live transcript of the questions and answers as they happen.
If you are a Sage customer and would like to ask a question to Helen please click here to register for the surgery , get in touch with your Sage account manager on 0845 111 1111, or email firstname.lastname@example.org for access to the live session.
Yes i have received an offical response from HMRC who said:
"The important message is that RTI does not change the calculation of PAYE for directors. EIM26505 applies. The question is whether the payment is or is on account of earnings or whether it is a loan which is subject to a beneficial loan benefit in kind charge."
Guidance explaining EIm 26505 is available at: http://www.hmrc.gov.uk/manuals/eimanual/EIM26505.htm
If your client is paying less than £1500 then yes they can pay quarterly, however they will still need to submit an FPS to HMRC each time the employees are paid. This weblink has more information http://www.hmrc.gov.uk/payinghmrc/paye.htm
You can do an EAS for this although i would check with the Sage helpdesk first on 0845 111 2451 just to make sure that this is how the software has been set up. However, the action you will need to take is to submit EPSs and actually you dont need to ave submitted an EAS to be able to submit an EPS. A quick call to Sage will clarify how they have dealt with this requirement.
After that, if there are no payments to report on an FPS, you must instead submit an EPS to indicate no payment is due for one or more (up to a maximum of six) complete tax months. Using the period of inactivity box means you would only need to do this twice a year as you can go up to six months ahead. At the year end, you must submit an EPS to indicate that this is your 'Final submission for the tax year' and answer the end of year declarations and questions.
The following link gives more information. http://www.hmrc.gov.uk/payerti/reporting/what-to-report.htm#7
The FPS needs to be submitted to HMRC on or before the day payment is made to the employees. You can submit the FPS to HMRC before the employees are paid but not after.
If you operate a payroll to deduct the tax and you have a PAYE scheme then yes you will need some kind of payroll software as that is now the only way you can report PAYE deductions.
If the deductions are not made trough a payroll then you can simply carry on with the process you have now.
As i mentioned earlier, there is a lot of confusion about the interaction between CIS and RTI. But the key thing to know is that the process hasn't vhanged, only the way you report PAYE. if you didnt have a PAYE scheme before then you don't need one now. If you did, and you report these deductions through it, then you will need to report using RTI and you can only do that through software.