This whole RTI thing

[Clare@InTouch]

Are InTouch going to do this for clients as part of the standard service, or require us to do it ourselves, or give us the option either way?

We'll do it as part of the standard service. Unless you want to do it yourself, but I can't imagine why you'd want to!

[geoff from contracta IOM]

It's this bit that worries me...!

In future HMRC will be able to see what any individual is paid and consequentially amend any benefits (including child benefit). What is really worrying is that long term, HMRC want to administer the pay themselves. They are aiming for employers to transfer salaries to the Revenue who will then forward onto employees their pay less tax.

It should :nazi::nazi::nazi::nazi::nazi:

[d000hg]

As I understand it RTI involves HMRC knowing about payments at the same time/before they're physically made.

So this _should_ mean prior to the client taking any money, they have a think, discuss with accountant if needs be, decide what it should represent, and then submit RTI thing/prepare dividend minute/voucher as appropriate. I'm saying in reality in a lot of cases this doesn't happen.

Isn't it only relevant to PAYE and therefore not dividends? Regarding salary, you can plan all 12 payments in advance - before - so isn't that possible?

[Maslins]

Isn't it only relevant to PAYE and therefore not dividends? Regarding salary, you can plan all 12 payments in advance - before - so isn't that possible?

Yes and yes.

My point is that a lot of people don't plan in advance, just take cash, submit nothing, and rely on it all being sorted retrospectively at year end.

Like I say, the regular posters on here will no doubt be up to speed (at least by April) and will likely take note of what their accountant suggests. I'm sure Clare would agree with me that there's an awful lot of contractors out there who aren't so savvy, nor do they necessarily do what we recommend they do.

[LisaContractorUmbrella]

In future HMRC will be able to see what any individual is paid and consequentially amend any benefits (including child benefit). What is really worrying is that long term, HMRC want to administer the pay themselves. They are aiming for employers to transfer salaries to the Revenue who will then forward onto employees their pay less tax.

It should :nazi::nazi::nazi::nazi::nazi:

And you can just see that running smoothly can't you

[cojak]

I'm expecting an update to FreeAgent in the near future, so that PAYE is sorted in the same way that VAT is currently.

[Maslins]

I'm expecting an update to FreeAgent in the near future, so that PAYE is sorted in the same way that VAT is currently.

I hope you're right. Last I heard they were more likely to link via APIs with an external payroll provider, rather than get the inbuilt payroll function up to scratch...main reason being the existing inbuilt one is a long way short of what's needed, RTI or otherwise.

[captainham]

I'm sure HMRC will build RTI reporting into their payroll tools release next April. Well, that would be the logical/sensible thing to do..

Looks like this will actually be the case:

HM Revenue & Customs: Download and install Basic PAYE Tools

[Clare@InTouch]

Yes and yes.

My point is that a lot of people don't plan in advance, just take cash, submit nothing, and rely on it all being sorted retrospectively at year end.

Like I say, the regular posters on here will no doubt be up to speed (at least by April) and will likely take note of what their accountant suggests. I'm sure Clare would agree with me that there's an awful lot of contractors out there who aren't so savvy, nor do they necessarily do what we recommend they do.

Absolutely. And it's those that will cause the headache for the accountants - people who change their minds half way through, take more than you set up, take less than you set up, start paying their next door neighbour's dog without telling you etc.

Fun times - just wait until they start doing it with benefits in kind too, imagine the loan account trauma!

[SueEllen]

They are aiming for employers to transfer salaries to the Revenue who will then forward onto employees their pay less tax.

It's to stop employers not paying HMRC on time which some companies do.

So in theory if HMRC aren't paid then neither will the employees, so the employees will put down tools.