Are you ready for the end of RTI relaxation?
It has now been almost a year since HMRC first introduced Real Time Information (RTI). While a small minority of businesses were granted a “relaxation” of the reporting process to allow them time to fully prepare, this relaxation period is now coming to an end and businesses need to start planning to ensure they are fully compliant by April.
RTI was the biggest change to payroll in over 70 years, since PAYE (Pay As You Earn) was introduced. Under the new legislation businesses are now required to report PAYE information electronically to HMRC “on or before” each payroll run.
For some smaller businesses, this was a difficult change to implement, so to help ease the transition HMRC introduced a policy of relaxation for certain organisations. Under this policy the companies in question would be allowed to report their data to HMRC at the end of each standard payroll run, rather than “on or before”.
Initially this policy was only planned to run until 5th October 2013, but was later extended to 5th April 2014.
So now that the relaxation period is coming to an end, what steps should small businesses be taking to ensure they will be fully compliant by the April deadline?
One key piece of advice given to businesses in the run up to the original introduction of RTI was the importance of data accuracy. Making sure that you have correctly set up employee records and maintain these with up to date information will make the transition much smoother.
Most businesses should already have an RTI compliant payroll solution in place, but you should be asking yourself if you have the right solution for your specific business requirements. IRIS offer a variety of payroll solutions ranging from free payroll software for businesses with simple payrolls and less than 10 employees, all the way up to a fully outsourced service, for those who want somebody else to handle their payroll for them.
April also marks the first payroll year end since the introduction of RTI. While the introduction of RTI earlier this year has changed year end by removing the need for P14s and P35s, it has also brought in a range of new processes you need to be aware of.
Don't worry though, IRIS is here to help with payroll year end solutions.