Are You Ready for HMRC Real Time Information and the New Tax Year?

Online, April 25, 2013 (Newswire.com) - In this new tax year, employers have to start reporting PAYE information to HMRC in real time. You may see this referred to as Real Time Information - or RTI.

This means that each employer (or their accountant, bookkeeper or payroll bureau) will have to:
• send details to HMRC every time they pay an employee, at the time they pay them
• use payroll software to send this information electronically as part of their routine payroll process

Time is running out to ensure your SAP payroll solution is set up for RTI and itelligence can help you make the transition with a minimum of fuss. 92% of employees receive their salaries through the highly secure BACS channel, making BACS the ideal method for submitting Real Time Information to HMRC via SAP payroll.

So how do you ensure you are ready for HMRC RTI and the new tax year?

RTI - The master SAP note is 1630586 - this links to the user and config guides and details the patch level you need to be at. This is available on the SAP Support Portal - please contact us should you require more information.

New Tax Year - The note for pre-budget changes for GB effective for the 2013/14 tax year is 1796768 - also available on the SAP Support Portal.

Let us know if we can assist with applying the patches or just doing the RTI configuration alone

What is HMRC Real Time Information?
RTI will enable HMRC to collect information about tax and other deductions each time employers run their payroll; and it will be mandatory by October 2013 when Universal Credit is introduced. This is different from the current PAYE system, where employers assign employee tax codes during the year before submitting this information at year end.

When is it happening and what is involved?
HMRC successfully began piloting the 'interim' solution in April 2012. It is expected that migration en masse will commence in early 2013 with small and medium businesses making the transition before the end of April 2013. HMRC intend to introduce penalties for failure to comply with RTI regulations.

How will this affect you?
Employers will now submit tax data along with their payroll run; whether weekly, fortnightly or monthly as opposed to at year end, and some software upgrades may need to be made. Employers must ensure that their payroll and payments solutions are able to support RTI.

How can itelligence help?
ERP Patching
• 1 day software download and Solman connections
• 1 day per system patching (not APPL, just SAP_HR, SAP_ABA and SAP_BASIS plus dependencies)
• 0.5 days SPAU activities

Java Patching
• 1 day software download and Solman connections
• 1 day per XI system patching (purely HR content files on java side)

End of Year & RTI
• 3 days basis for EOY & RTI configuration
• 3 days HR functional for EOY & RTI configuration

The time taken to configure RTI varies depending on content already configured and SPS installed. Our quote is therefore based on our best estimates, however actual time spent is based on Time & Materials and would be charged accordingly.

For more information visit our HMRC Real Time Information page