SJD Advice on RTI Changes to payroll

[Jessica@WhiteFieldTax]

I agree it's easier than the old tables, but I doubt whether many people use those now

For single employers or accounting practices, RTI is an increased time and complexity commitment, and there's not going to be much to mitigate that.

The vat online example is a double edged one a - the system works well, but is much more time consuming than filling in 9 boxes on a form and taking it the the post office along with your other envelopes. Just the logging in and logging out process, and the clicks to check, approve, validate login, file, etc. it's saved HMRC lots of manpower in processing time, by doling out a few minutes extra a few times a year to each taxpayer, RTI is the same, but, alas, the few minutes add up

And that's assuming their systems work as expected, not to be assumed.

[Contreras]

The old way, it was excusable to pass all this off to an acct so that you don't have to keep abreast of tax and ni tables and tax codes and actually understand how to apply them. Now, all you need do is download a bit of FREE sw (I guess most of us have less than 9 employees after all), set an account or two up (equiv to the old P11) and use it to calculate a payment and deductions once a month, click the button and the submission is done.

This was already the case with the HMRC Basic PAYE Tools software, including NI calculation and EOY online P14/P35 submission. Accountants shouldn't be charging more than £50-£100/yr for running a one-man-band payroll imho. It remains to be seen how much HMRC manage to balls up the new software for RTI though.

edit: Also, I meant to mention, aren't there some odd NI implications if you pay yourself 6 mthly or annually where you pay a lot more NI? I can't remember exactly what though.....

Directors NI is calculated on a cumulative basis, so no it shouldn't matter in that respect. But whether RTI can deal with directors going without salary for 11 months of the year is another thing. I already do this and I'm hoping that the new system won't mean making pointless returns each quarter or risking a penalty.

[Jessica@WhiteFieldTax]

I already do this and I'm hoping that the new system won't mean making pointless returns each quarter or risking a penalty.

You will need to either

(a)get the scheme set up as a an annual one with HMRC so they only expect one submission a year - this is possible, but not publicised well - or you

(b) will need to do a EPS (Employer Payment Summary) for the pay periods when no payment is made, and hence no FPS (Full Payment Summary) submitted. From what I can tell the EPS is due monthly even if you pay quarterly - but I confess getting clarity on this isn't easy.

[Contreras]

You will need to either

(a)get the scheme set up as a an annual one with HMRC so they only expect one submission a year - this is possible, but not publicised well - or you

(b) will need to do a EPS (Employer Payment Summary) for the pay periods when no payment is made, and hence no FPS (Full Payment Summary) submitted. From what I can tell the EPS is due monthly even if you pay quarterly - but I confess getting clarity on this isn't easy.

Thanks for that Jessica.

I found this on HMRC web site:

Annual schemes

If you pay your employees annually in a single tax month, you can ask HMRC to treat your PAYE scheme as an 'annual scheme'. You must first advise HMRC of the month you expect to pay your employees because when an annual scheme is registered they will record which month your FPS is expected to be made. For example, if all your employees are paid in March every year, HMRC will expect an FPS in March - and if this is your only submission for the tax year you must indicate that it is your 'Final submission for the tax year' and answer the end of year declarations and questions. If, in a later tax year, you submit your FPS in a different month, your expected month will be changed by HMRC for future years. Once your business is registered as an annual scheme, you do not need to send in EPS for the other 11 months of the tax year that you make no payments to employees. If you think this might apply to you, contact HMRC's Payment enquiry helpline and have your Accounts Office reference number to hand.

HM Revenue & Customs: When to report

So I guess I need to give them a call.

[tractor]

..

Seems to me the only real hassle with all this (aside from that experienced by service providers i.e. accts) is that you have to ask permission from hmrc to pay anyone!

What happens if you make a final submission, you decide to pay a bonus or other unforseen payment?

[malvolio]

Seems to me the only real hassle with all this (aside from that experienced by service providers i.e. accts) is that you have to ask permission from hmrc to pay anyone!

What happens if you make a final submission, you decide to pay a bonus or other unforseen payment?

You don't?

Spoke with SJD this morning. As a result I'm staying on monthly payroll and will set up a process to pay everything at a fixed day each month (probably the 20th) , while SJD look after the matching RTI paperwork. So some extra faff, but nothing to lose sleep over.

[Andrew@Wisteria]

Problem with SJD method

Has anyone else received the RTI email from SJD.

With the changes they are proposing that you take all of your salary once per year with the first payment being in March 2014.

The mail also implies that if you take salary monthly there will be extra charges due to increased admin.

Any thoughts on this?[/QUOTE]


If the company has employees then difficult to not pay them until the year-end! Furthermore, even more difficult to control timing of directors actual payments to themselves - regardless of what it says on paper!

[malvolio]

Has anyone else received the RTI email from SJD.

With the changes they are proposing that you take all of your salary once per year with the first payment being in March 2014.

The mail also implies that if you take salary monthly there will be extra charges due to increased admin.

Any thoughts on this?

Have you read the post immediately before yours?

Perhaps a call to SJD would help?

[Andrew@Wisteria]

Have you read the post immediately before yours?

Perhaps a call to SJD would help?

Yes, hence the issue I raised! Furthermore, if the company has any employees (e.g. wife and they were paid £7488 in month 12 then NI would be due)

[Danielsjdaccountancy]

Hi Andrew,

I guarantee there are no extra charges from SJD if you wish to have a monthly salary. If your accountant says otherwise please PM me and I will discuss this with them.

Lots of our clients have no real need for the monthly salary, hence our proposal of annual. If however, they do require it monthly, which most do, then we are happily accommodating it within the standard monthly fee as soon as they request it.

We have 12,000 clients so we are just trying to ensure unnecessary emails aren't being sent to them if they don't really require a monthly salary.

Saves admin time allowing us to concentrate on the monthly runs.