RTI errors to be penalised from April 2013

HM Revenue and Customs (HMRC) will be taking a tough stance on errors in PAYE submissions when Real Time Information (RTI) is launched next year.

HMRC has announced that it will impose financial penalties for errors in submissions from April 2013, as soon as RTI comes into force. However, penalties will not be imposed on late filing of returns until April 2014.

Under RTI, which will be mandatory, all employers will be required to submit details of salary payments and deductions as they are made, rather than waiting until the end of the tax year as they do now.

This tough stance from HMRC on errors will come as a disappointment to many smaller employers as it means penalties will be imposed from the very start of the new system when errors are much more likely as people get used to it.

This means it has never been more important to address this major change now and if necessary seek professional help to ensure that everything runs smoothly when April comes around, to avoid the cost of being caught out.

Hart Shaw is running a free seminar on RTI on Wednesday 16th January 2013, for more information please get in touch.

For further information, please contact Steve Vickers, Tax Partner on T: 0114 251 8850 or email: steve.vickers@hartshaw.co.uk.

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Employers reminded about National Minimum Wage changes

Employers should be reminded that changes to the National Minimum Wage have now come into force.

From 1 October, the main adult rate for those over the age of 20 increased by 11p to £6.19 per hour, while the hourly rate for apprentices has risen by 5p to £2.65.

There is no change to the rate for 18 to 20-year-olds of £4.98 per hour, and the £3.68 hourly rate for 16 to 17-year-olds.

The onus is on the employer to ensure they are aware of these changes and adjust their payroll accordingly.

However, running your own payroll can place a significant burden on smaller employers whose time could be put to better use in other areas of their business. If you are struggling to manage your payroll then it may be worth outsourcing this function to a dedicated payroll bureau or your accountant, leaving you free to focus on running your business.

For further information, please contact Steve Vickers, Tax Partner at Hart Shaw on T: 0114 251 8850 or email: steve.vickers@hartshaw.co.uk.

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