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Real Time PAYEMore than 1.4 million employer PAYE schemes are now reporting in real time, HMRC has said.

This means that more than 83% of small to medium firms and 77% of micro employers have already started to report PAYE in real time. HMRC is now writing to employers who should be reporting PAYE in real time but have not started yet to explain that they have missed a PAYE reporting deadline and how to get started. Information for employers is available at hmrc.gov.uk/actnow

Reporting relaxation for smallest firms to be extended

HMRC has also announced that it will be seeking to extend the temporary relaxation of the new reporting rules for businesses with fewer than 50 employees from October 2013 until April 2014, and that this relaxation will come to an end at this point. The extension means that businesses will not be required to change their approach halfway through the tax year.

The relaxation has meant that these businesses are still required to report through the new system, but are able to do so once a month, rather than each time they pay their employees. This gives small businesses that pay weekly (or more frequently), but who only run their payroll at the end of the month, some extra time to adjust to the new requirements.

From April 2014, all employers need to plan to be reporting in real time.

Big PAYE changes

David Gauke, Exchequer Secretary to the Treasury, said:

“This is the biggest reform of PAYE since its introduction nearly 70 years ago and we are bringing the system into the 21st century. The transition is going well, and the vast majority of employers are now reporting their PAYE information in real time, meaning that HMRC’s records are becoming more accurate and up-to-date. DWP is already using the new system to underpin its Universal Credit pilot, helping it to be more responsive to changes in claimants’ income levels. This is all good news, but we will continue to listen to and work with businesses to ensure that all employers are reporting in real time by April 2014.”

Ruth Owen, HMRC’s Director General for Personal Tax, said:

“The roll-out continues to exceed our expectations. I am delighted that 83% of SMEs and 77%  of the smallest businesses are already on board. We will now write to the minority of employers who are not, to establish how we can help them meet the requirements of reporting in real time.”

Get RTI help

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With RTI now underway, it’s understandable you’ll have questions. We’ve provided some quick ways for you to get the answers you need.

Webinar slogan poster design

Webinar slogan poster designRecorded as part of Start Up Britain Finance Week, this webinar aims to answer those burning questions you have about Real Time PAYE, from getting your data accurate and ready to when and how to file your payroll submissions in real time.

Maggie Anderson from HMRC was with the Intuit team to answer participants’ questions and show you how QuickBooks Payroll makes it easy to get ready to report and file PAYE in real time.

Watch the webinar now:


Webinar slogan poster design

Webinar slogan poster design

This 10-minute webinar shows you how easy it is to file payroll submissions with QuickBooks RTI-ready Payroll software. You’ll see:

  • how to file payroll submissions
  • the changes in employee records
  • how to turn RTI on and off (which you need to do before 6th April deadline)

Don’t forget that for a limited time, new customers subscribing to QuickBooks Pro+Payroll will receive our Real Time Payroll software completely free for 12 months, saving £240 over the year! Find out more.

See all our free webinars

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Real Time PAYE

Until 31st May, new customers subscribing to QuickBooks accounting software will receive our Real Time Payroll software completely free for 12 months, saving £240 over the year!

There’s less than one month to go until the deadline for Real Time PAYE reporting on 6th April, and yet many small businesses are still not prepared for the biggest change to payroll legislation in over 60 years.

Recent research by YouGov for Intuit found that less than a third of small business owners have taken necessary steps to ensure their payroll processes are compliant.

To send PAYE information in real time, HMRC recommends employers use Real Time PAYE software (HMRC publishes a list of recommended software on its website) or ensure their payroll provider has updated its systems.

According to Intuit’s research, half of small businesses manage payroll in-house, using either commercial software (32%) or HMRC’s basic PAYE tool (18%), and just over one third (37%) outsource the process to an agent, payroll bureau or service provider. One-in-ten (11%) small businesses process payroll using manual methods, such as a spreadsheet package.

There are more than 1 million businesses in the UK with between 1 and 50 employees according to BIS (Enterprise Directorate Analytical Unit).

Real Time PAYE resources

To help small businesses navigate the changing payroll landscape, we have created a bespoke Real Time PAYE website, with free information, training and advice to ensure they have all the information and tools they need to be ready to report in real time.

However, with the clock ticking and many thousands of businesses still not prepared for the change, we are also offering FREE Real Time PAYE software to new customers for their first year.

Free RTI software

Until 31st May, new customers subscribing to QuickBooks accounting software will receive our Real Time Payroll software completely free for 12 months, saving £240 over the year.

QuickBooks Payroll simplifies real time reporting, allowing employers to automatically file their reports to HMRC with just a few clicks, saving them time each pay run.

The offer is in place across the crucial final preparation period when most small businesses will be updating their systems.

By lowering the cost barrier, we are aiming to spur on businesses that have delayed taking action to get ready and avoid getting caught out in April.

Lisa Turner, Intuit’s payroll specialist, commented:

“We are proud to be supporting employers as they get ready for Real Time PAYE. The clock is ticking and the 6th April deadline will come around very fast, bringing with it the biggest change to payroll legislation in over 60 years.”

Find out more