From 6 April employers must send PAYE information to HMRC in real time. This means as part of the payroll process employers must notify HMRC every time they pay an employee, at the time they pay them.
In readiness for the new regime employers need to take the following steps:
- Ensure your HR software is compliant. It should be capable of gathering the information required by HMRC based on payroll entries. Small employers can use HMRC's free payroll package.
- If you use a payroll service provider they will send the required information to HMRC for you but ensure they have all the information they need to do to this for you.
- You will be required to send payroll information for all employees including casual or seasonal workers and those below the lower earnings limit.
- Make sure you hold accurate and up-to-date employee information on your employees. You will need their full name, address, date of birth, gender and national insurance number. Ideally you should verify this information by checking birth certificates, passports, or driving licences.
- Familiarise yourself with the new forms. For example, the starter and leaver process will be simplified and a lot of information will now be sent together with the payroll information. Some forms, such as P45s, will no longer need to be submitted to HMRC.
- This is the final year employers will need to send an end-of-year return (for year 2012-2013) and this needs to be filed by 19 May 2013.
Pam Loch, Managing Partner of niche employment law practice, Loch Associates Employment Lawyers and Managing Director of HR Advise Me Limited.
For more information on Loch Associates Employment Lawyers please go to www.lochassociates.co.uk and for HR Advise Me go to www.hradvise.me