Payroll RTI extension

  • Do you have 9 or fewer employees?
  • Has your payroll scheme been set up before 5th April 2014?
  • Read on as may have until April 2016 to become fully compliant with RTI.

Michael Godsmark,

January 14, 2014

Real time information (RTI) – package of help for micro businesses with payroll

HMRC announced in December 2013 that micro businesses will be given extra time to become fully compliant with RTI.

RTI is a system of reporting employee payment data electronically to HMRC and has been introduced to tie in with universal credits.

The new deadline is April 2016. The extension means that any qualifying business will only need to file on or before the last pay date of the month, as opposed to every pay date.

 

Who Qualifies?

To qualify for this a micro business must –
• Have 9 or fewer employees
• Be running a payroll scheme set up before 5th April 2014

 

What you need to do now

If you have 9 or fewer employees and your payroll started before 5th April 2014 –
• You only need to file one Full Payment Submission (FPS) per month
• This must be on or before the last pay date of the month
• Any late submissions will incur late filing penalties
• After April 2016, you’ll need to file FPS’s on or before every individual pay date

If you have 9 or less employees and your payroll started after 5th April 2014 –
• You’ll need to file a FPS every time you pay employees
• Any late submissions will incur late filing penalties

If you have 10 or more employees
• Before 5th April 2014 you only need to file one FPS per month
• This must be on or before the last pay date in that tax month
• After this date you must file on every pay date
• Any late submissions will incur late filing penalties

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About The Author

Michael is an enthusiastic and cheerful individual who, when not hard at work, enjoys mountain biking, cooking curry and travelling to new places.

   @MichaelWDVLL

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