HMRC announce delay in RTI penalty regime

HMRC listen to payroll profession and announce delay in RTI penalty regime

From: Lisa Kennery

12 February 2014

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HMRC has just announced that there will be a staggered start to the introduction of Real Time Information penalties.

The new automatic in-year Pay As You Earn (PAYE) penalties for late filing and late payment and in-year interest (charged on tax and National Insurance Contributions (NICs) that are paid late during the year), were due to start from 6 April 2014.

Real Time Information (RTI) is a big change and HM Revenue and Customs (HMRC) and some employers are continuing to learn. Having listened to customer feedback, HMRC has decided to stagger the start of the new in-year late filing and payment penalties to give employers more time to adapt to reporting in real time. The new timetable will be:

  • April 2014 – in-year interest on any in-year payments not made by the due date
  • October 2014 – automatic in-year late filing penalties
  • April 2015 – automatic in-year late payment penalties.

At the same time, HMRC is continuing to improve its systems and guidance.

HMRC has worked closely with the Department for Work and Pensions (DWP) to ensure that RTI will support the operation of Universal Credit, which brings together means-tested in and out-of-work benefits.

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

“The introduction of RTI is going extremely well for the majority of employers but there are still some who need a bit of time to adapt fully to the changes. This additional time will give us the opportunity to ensure that improvements to our internal systems are working, to learn from them and to provide better customer support to employers who need more time to adapt.”

 

Payroll Update – Basic PAYE Tools – from HMRC

Payroll Update – Basic PAYE Tools – from HMRC

by: Lisa Kennery

If the Pierce Payroll team are processing your payroll for you, you need not worry and can disregard the following message. However, if you are running your own payrolls you need to be aware of the following information from HMRC re: their ‘Basic’ PAYE Tools software updates.

Important Tip: Always ensure backups are processed after each pay period.

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Basic PAYE Tools – new version

Basic PAYE Tools RTI has been updated with versions for users of Windows, Linux and the Mac operating system.

Basic PAYE Tools RTI

  • Version 13.2.13232 is now available for users of Windows and Linux operating systems
  • Version 13.2.13231 is available for users of the Mac operating system.

It is important that you are using the latest version of the Basic PAYE Tools RTI – otherwise you may be operating PAYE incorrectly.

To check the version you are using, open the Basic PAYE Tools RTI for 2013-14. The version number Download Basic PAYE Tools  is shown in the bottom left corner of the Home page

Basic PAYE Tools RTI is a free computer software package provided by HM Revenue & Customs (HMRC) to help you run your payroll throughout  the year and report payroll information in real time (RTI).

The tools are designed for employers with nine or fewer employees and will work out the tax and National Insurance contributions (NICs) for  your employees in each pay period and send this information to HMRC.

This guide explains how to make sure you download the latest version of the tools and any updates, what you need to be able to use them and what to do to solve any problems you encounter.

On this page:

First Steps

HMRC has a user guide – with screenshots – that will help you with downloading and installing the product. You might want to look at this first.

Download ‘First time users: download and install  Basic PAYE Tools (RTI)’ (PDF 1.7MB)

Get the version of Basic PAYE Tools that’s right for you

It’s important to make sure you always use the most up-to-date version  of the tools, and the one that will run your payroll correctly and send  the necessary submissions to HMRC.

System requirements for Basic PAYE Tools

Basic PAYE Tools has been tested on computers with the following operating        systems:

  • PCs running Microsoft Windows 8, Windows 7, or Windows XP (32 or  64 bit)
  • Apple Macs (with an Intel processor) running Mac OS X 10.8 or OS  X 10.7
  • computers running Linux operating systems compatible with Ubuntu 12.10 or 13.04

The minimum system requirements are:

  • 1 GHz processor
  • 1 GB RAM
  • 500 MB available hard disk space

Basic PAYE Tools may not work on older versions of the Windows, Mac or Linux operating systems, and will not work on mobile operating systems  such as iOS or Android. Basic PAYE Tools won’t work with Apple Macs fitted with PowerPC processors. If you have an Apple Mac computer and are not  sure whether it has an Intel processor, select the Apple logo on the top left hand corner of your desktop and then select ‘About this Mac’.

Customers using Basic PAYE Tools in ‘Assistive Mode’ (which is designed for users of screen reader software) are advised to avoid using the following browser and operating system combinations:

  • Firefox or Chrome browsers on a computer running Windows Vista
  • Internet Explorer 7 browser on a computer running Windows Vista or          Windows XP

If the computer on which Basic PAYE Tools RTI will be installed has  internet access, but doesn’t have broadband internet access, you will  still be able to send your payroll information to HMRC online, but you may find it easier to download the initial version of the Basic PAYE Tools RTI from a CD-ROM as the internet download will take more than an hour. If you want to do this, telephone HMRC’s Employer Orderline  and ask for a copy of ‘Basic PAYE Tools RTI’ on a disc – this may take up to seven working days to reach you.

Contact          HMRC’s Employer Orderline

Disclaimer – please read before downloading the tools

HMRC will not be responsible for any loss, damage, cost or expense arising  out of the installation and use of this application.

The security of the data held in the Basic PAYE Tools is your responsibility.

If you are already using an earlier version of Basic PAYE Tools, HMRC strongly recommends that you back up your data before installing any new version.

Basic PAYE Tools RTI for 2013-14

I  want to download 2013-14 Basic PAYE Tools RTI for Windows (ZIP 38MB) (Opens new window)

I  want to download 2013-14 Basic PAYE Tools RTI for Mac (ZIP 82MB) (Opens new window)

I  want to download 2013-14 Basic PAYE Tools RTI for Linux (ZIP 43MB) (Opens new window)

All PAYE tools for employers    

Online tools – available to use right now

Company car and car fuel benefit calculator Calculates the ‘benefit in kind’                value of a company car and/or car fuel benefit, indicates the  level of employee Income Tax payable

Statutory  payment calculators Calculate employee eligibility and amounts for Statutory Sick Pay, Maternity, Paternity or Adoption pay and what you can recover

Employment status indicator Helps you work out whether a worker is employed or self-employed (excludes certain types of worker such as office holders)

National Insurance calculator  Works out National Insurance contributions for                not contracted-out and contracted-out employees – see extra notes  on directors

National Insurance  calculator – directors annual earning period This calculator                reassesses the National Insurance contributions for a company director using an Annual Earnings Period at the end of the financial  year, or during the year, if the directorship ends

No PAYE/NICs payment due How to tell HMRC you have no PAYE/NICs payments to make for a month  or quarter

PAYE tax calculator Works out the tax due for all tax codes – no need to refer to manual tables or do any calculations yourself

Reference checkers for electronic payment Checks you’re using the right                Accounts Office reference before you make an online payment –                helps avoid payment delays

Downloadable tools – install on your computer

Download Basic PAYE Tools How to download HMRC’s Basic PAYE Tools and keep up to date with the latest versions and updates

PAYE Desktop Viewer Use to view, search and sort online PAYE codes, notifications      and reminders

    

 

Child benefit changes ‘unfair’?

Thousands of East Lancashire families could be affected by changes to child benefit which are due to come into force in January.

Under the new rules, if either a claimant or their partner has income in excess of £50,000 Continue reading