Is Company's monthly income included during RTI

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Hello,

I have one simple question, I am a accountant and trying to work on my own, I have one client and just doing payrolls for him, he sent me the company's monthly gross income for RTI, he said previous accountant was asking him about this income, and I can't understand if I should put this information anywhere whilde doing RTI for him, am I missing something? 

Generaly, first I do payroll and then according to that I do RTI as well, using Payroll Manager for that. And there is not option in the program to write monthly income of the company, so if you give me any advice regarding that, it would be appreciated!

Thank you in advance!

 

 

Replies (10)

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By Paul Crowley
18th Jun 2024 14:20

Prior accountant was checking whether client needed to register for VAT would be my guess.
The other possibility would be CIS tax deducted from a subcontractor.

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Replying to Paul Crowley:
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By FactChecker
18th Jun 2024 15:26

They're the two that sprang to mind for me also - unless this is a very strange client who tries to pay himself each month based on company turnover!

OP: there is no requirement (nor data item) for recording "company's monthly gross income" within RTI.
FWIW there *are* company figures that can affect the company's entitlement to certain payroll aspects (for instance EA and Small Employers’ Relief for non-SSP statutory pay), but you still don't actually report the company's gross income anywhere in RTI.

Thanks (4)
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By SXGuy
18th Jun 2024 17:01

This wouldn't be some sort of umbrella set up where all the companies income is salaried would it?

Does the figure he give you re income match the gross pay for the period?

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Replying to SXGuy:
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By Niniiko
18th Jun 2024 17:17

thanks for the reply, he just provides NET figures for salaries he had paid to his subcontractors, and gross income of the company that's it.

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Replying to Niniiko:
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By Southwestbeancounter
19th Jun 2024 14:22

Presumably you don't prepare and submit the contractor's CIS returns (showing the monies paid to the subcontractors and the tax deducted thereon) to HMRC then?

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Replying to Southwestbeancounter:
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By Niniiko
19th Jun 2024 14:39

Hi, yes, yes I do, I did the previous CIS Return but he provided annual gross income and tax, payment and deductions statement.

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Replying to Niniiko:
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By Paul Crowley
19th Jun 2024 15:48

Does he get tax deducted from the money he receives under CIS?

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Replying to Paul Crowley:
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By Niniiko
19th Jun 2024 15:54

Yes, he does

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Replying to Niniiko:
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By Paul Crowley
19th Jun 2024 18:34

You should be sending in the tax deductions to date total on the PAYE scheme on a regular basis.

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By the_fishmonger
19th Jun 2024 09:15

Apart from these possibilities, there is a relatively unknown issue where a director claims Universal Credit.

UC insist that they can substitute the company figures to determine quasi self-employed figures in order to calculate the amount payable to the claimant under Regulation 77.

One of our clients was approached by UC in December and, after taking specialist advice, was told it's fair dinkum. They are now reporting a monthly shortened P&L to UC.

Maybe the former accountant would have been reporting this on the client's behalf. Some do offer to do other stuff, like UC, beyond the general practice norm (I know of at least one, and it's not me!).

Link to Reg 77 - https://www.legislation.gov.uk/uksi/2013/376/regulation/77

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