requisite steps to ensure readiness for this latest development to impact on their payroll processes!
David Gauke, Exchequer Secretary to the Treasury, said:
“ For employees, particularly the 1 million people in the UK with multiple jobs, RTI will bring benefits as HMRC starts to get details of their tax every time their wages are paid, rather than just once a year. This will make HMRC’s records more accurate and up-to-date and will reduce the number of cases where someone is found to have under or overpaid tax during the year. “RTI will deliver the new Employment Allowance, which will reduce the cost of taking on new staff for small business. RTI will make it simple to administer, to ensure maximum take-up and help aspiring businesses grow by hiring employees or expanding their workforce.
“Real Time Information will be better for employers and employees. It will bring PAYE into the 21st century.”
Ruth Owen, HMRC’s Director General Personal Tax, said:
“ This will be a year of transition. Employers will start to report PAYE in real time from their first payday on or after 6 April. We understand it may take some time before all employers will get into the routine of real time reporting. But HMRC is here to give help and support, including offering free software for employers with nine or fewer employees, regular live Twitter Q&As, YouTube videos and roadshows across the country.” From April 2014 every business and charity in the UK will be entitled to a £2,000 Employment Allowance to reduce their employer National Insurance Contributions bill each year. The Employment Allowance is permanent, and open to all businesses and charities in the UK, regardless of their age, size or location.
Full details of the Press release are available at the HMRC press centre.
HMRC PUBLISHES NEW GUIDANCE FOR REAL TIME INFORMATION
9 April 2013
In the run up to the launch of Real Time Information on Saturday, HMRC has been publishing updated guidance for employers. However, last minute changes meant that some elements of guidance were not available in advance.
HMRC has now published additional guidance covering starter declarations and how employers and CIS contractors should pay HMRC.
Real Time Information: starter declarations from 6 April 2013 HM Revenue & Customs have amended the guidance on the PAYE starter process to reflect customer feedback on starter declarations , to help increase accuracy for individuals with a P45 and more than one job. In such cases, instead of selecting statement C and operating tax code BR, the employer should select statement B and operate the tax code on the P45 - unless the tax code on the P45 is BR, 0T or D prefix - in which case statement C would still apply. Individuals without a P45, or with an old P45, will continue to complete the starter declaration to confirm their employment situation. This is effective from 6 April 2013. You can read the full guidance on employees starting by following the link below. Employee starting
CIPP Policy News Journal
12/04/2013, Page 224 of 362
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