Archive for March, 2013

FAQ about RTI payroll changes…

Thursday, March 21st, 2013

RTI Changes are coming up. There is no hiding, or burying your head in the sand. BIG BROTHER IS watching you. And if you slip you, you’ll get done. BUT, don’t worry…This blog will help you to know what to do…

There are a number of important preparatory steps employers need to take in good time before the launch in April 2013…

1. Data Quality

PAYE RTI requires complete accuracy of all employee data. So just make sure that you have the right information on employees. You cannot ‘guess’ their DOB e.g. 1.1.77 … no more of that. Check that you have the correct info on people, especially:

  • Full names, including middle names (abbreviations are no longer allowed)
  • NI numbers
  • Birth dates
  • Gender
  • Address
  • Number of hours normally worked (less than 16, 16 to less than 30, 30 or more, other – if number of hours varies significantly)
  • Regularly paid – regularly paid employees are paid each week or month and will be in almost all pay runs. Those who take more than three months off at a time, such as seasonal workers, should be set as irregular.

 

2. SOFTWARE

All UK payroll software has effectively had to become PAYE RTI compliant.

PAYE RTI compliant software will allow employers to submit RTI returns directly over the Government Gateway via an internet connection.

Make sure the software you use is RTI compliant.

Make sure that you are registered with: www.Gateway.gov.uk – so that you can make your submissions online.

 

FAQ … The answers to some commonly asked questions…

What does RTI? Mean?

RTI stands for ‘Real Time Information’

What is RTI?

RTI is the biggest shake up to payroll since PAYE was introduced in 1994. It is a new filing regime being introduced by HMRC, this will allow HMRC to track employers’ payments, increase the accuracy of PAYE deductions and provide up-to-date information on employees’ earnings.

Is there anything I need to do?

RTI requires certain information about all employees and their payments. If you haven’t already started to, you need to collect any missing data for your payroll.

The information we need is:

  • Full names, including middle names (abbreviations are no longer allowed)
  • NI numbers
  • Birth dates
  • Gender
  • Address
  • Number of hours normally worked (less than 16, 16 to less than 30, 30 or more, other – if number of hours varies significantly)
  • Regularly paid – regularly paid employees are paid each week or month and will be in almost all pay runs. Those who take more than three months off at a time, such as seasonal workers, should be set as irregular.

If you’re unsure whether you have what you need, please contact us ASAP to see how Boogles Ltd can help.

What happens if someone is on long-term sick or maternity leave?

After three months of a regularly paid employee not being paid, HMRC will automatically delete that employee’s details from the database. To prevent this from happening, when an employee receives an SMP1 or SSP1 form, you will need to set them as an irregular employee until they return to work.

I forgot to pay someone – what do I do?

This isn’t a problem as long as there hasn’t been an FPS submitted for this person.

(An FPS is a Full Payment Submission. Every payment made for every employee will require an FPS. So it is just what we call the information is sent to HMRC about payments to employees.)

I need to make an adjustment and pay the employee outside of the pay cycle, is this possible?

Though possible, this is now far more difficult than it used to be. You cannot simply undo the payslip as you could if the adjustment was to be made next time. Are you sure your employee can’t wait for this payment?

Why are they doing this ?!

Quite frankly – there’s lots of small businesses out there, getting their payroll wrapped round their neck… they’re paying people casually by cash and not including them on the regular payroll. There’s lots of people who have more than one job, and the government want to keep track of who is earning what. The government also want to make sure that a company is paying the correct amount of tax each month and not just ‘what they feel like’ or ‘what cashflow will allow’.

Plus it means, if they get the info throughout the year as they go along, then there’s no longer any need for year end forms like the p35, and people who are getting benefits e.g. Working Tax Credits, Job Seekers etc., will now we shown up the minute they’re paid, and the AMOUNT they’ve been paid… no need to wait until the end of the financial year or to make an adjustment if someone has been over/under paid in tax credits the following year.

Basically, it helps Big Brother to keep an eye on you!

🙂

 

RTI – Real Time Information … Payroll Changes

Thursday, March 21st, 2013

IN A NUTSHELL….

  • All UK employers (and pension providers) are affected by this change coming up
  • Payroll software will now automatically submit statutory PAYE returns to HMRC
  • CHECK your payroll software is RTI compliant, or use HMRC’s Basic PAYE Tools
  • Penalties apply for failure to submit returns e.g. 100 pounds!
  • Penalties issued automatically for ‘late’ submission via Government Gateway
  • RTI “a one way street” – no parallel operation… so no chance to go back and amend / edit / change something already submitted without it being a pain in the neck
  • Most (smaller) employers have no choice, and will be MANDADTED into RTI, April 2013
  • RTI returns need to reconcile with employee payments
  • BACS users submit an additional file via BACS

 

Corelegal Invites You To A #socialmedia CPD Seminar in London

Tuesday, March 5th, 2013

CoreLegal invites you to a CPD accredited seminar – LinkedIn for Lawyers.

A half-day seminar hosted by CPD provider Profirma, event will take place on:

Friday, March 8, 2013 from 1:30PM to 5:00PM – London

LinkedIn is hugely popular in the legal profession – with good reason, but how can you get the best from all that it has to offer? What are the best practices, what actually works and what should you be doing?

This seminar is for solicitors who are either actively collecting endorsements or only just getting started. 

There will be 3 highly knowledgeable speakers, who will deliever expert knowledge on the following topics:

  • take a strategic view of LinkedIn and its use in a rapidly evolving legal services sector

  • present case studies and show practical techniques that solicitors can use now

  • show how some joined-up thinking to turn online and offline connections into the start of a meaningful business relationship

 

To book: visit http://socialmediaforlawfirms-eorgf.eventbrite.com/


Tom Worner (ProFirma – see brief biography below):

  • Where legal sector is at the moment
  • How to maximise Social Media to build your reputation
  • Guide to LinkedIn as part of overall strategy, such as cross referrals and the power of client recommendation


Graham Aikin (Bespoke Social Media Trainer – see brief biography below):

  • Practical steps to take and in what order
  • Case studies – what actually works for business
  • Which parts of LinkedIn help lawyers build and maintain a good client database

 

Jason Cobine (Beyond Networking – see brief biography below):

  • Complementing social media with offline activities to find new clients
  • Taking offline contacts online and vice versa to grow the business
  • Making the first meeting count

 

Get the “know-how” you need at this seminar. Book today for the Early Bird discount. 

To book: visit http://socialmediaforlawfirms-eorgf.eventbrite.com/

 

Our highly knowledgeable, expert presenters: 

 

  • Tom Worner has worked both in private practice, specialising in company commercial law. He co-founded his own law firm in 2008, before exiting in 2011 to set up ProFirma. Tom now helps law firms and individual lawyers stand out and succeed in this new era of legal services.  ProFirma’s consulting programmes have been developed to help both established and start-up law firms with a focus on  business and strategic planning, marketing and sales planning, and special projects. 


  • Graham Aikin has spent over 8 years in private banking and wealth management in sales and relationship management roles. He is familiar with the issues that professional services firms face in terms of raising brand awareness, the acquisition and retention of clients, and the leveraging of professional networks, as well as the associated compliance issues.


  • Jason Cobine helps professionals and business owners generate introductions received through “word of mouth”.  Beyond Networking clients increase their lead generation by at least 20% within 10 weeks. Building profitable networks and get introduced to the right people. Effective networking increases company performance and profits.


Please note: Due to the popularity of our events there are no refunds yet you can send someone in your place, even at the very last minute.


CoreLegal is an alliance of brilliant minds and talent to support you – the legal profession. A one-stop shop for solicitors who want solutions now.