Management Accounting Systems
Real Time Information
1. You will move to RTI on 6th April 2013 unless HMRC advise you of a later date. The first task is to make an Employer Alignment Submission (EAS) which is used by HMRC to compare with their records and ensure they hold the same Employee details as you. The full procedures are at Section B.
2. The moment the EAS is submitted successfully, you operate PAYE under the RTI rules. This is true even if HMRC subsequently request a new submission.
3. All RTI submissions are for the entire PAYE registration. This is no change from the old End of Year submission and affects those who have a number of Accu-Man Payrolls that link together under the one PAYE Registration.
PAY RUN PROCEDURES
CLOSE MONTH PROCEDURES
6. This is the equivalent of the old P32 yellow booklet process and returns the Tax & NI figures to HMRC. The PAYE Month must be closed before any pay runs may be performed for the new month. For Weekly Payrolls, therefore, it must be done quite soon after the last FPS and not at the same time as the payment is made to HMRC (due 18th month following).The
MAIN CHANGES TO ACCU-MAN PAYROLL
8. There are some fundamental changes to Accu-Man Payroll behind the scenes:
10. If a pay run has been closed, it has always been possible with Accu-Man Payroll to undo and re-run the period so long as it is the last run on the system. In other words, if your last Week was W13 and your last month was M2, and you ran the week before the month, you may undo Month 2 but not Week
13. Under RTI, it is still possible to undo the last run - even if it has been submitted to HMRC via an FPS and also even if the PAYE month has been closed with an EPS. Having undone the run, made the changes and re-run, you must re-submit the FPS and re-close the PAYE month. HMRC will accept the repeat submissions and always take the figures from the last submission.
11. Continuing the example above where the weekly run cannot be undone, the procedure to correct the data for the weekly run has not changed:
12. There may be occasions when you wish to correct past year RTI records and HMRC have invented yet another submission for this purpose called the Earlier Year Update (EYU). This submits changes on the Employee cards since the final FPS for these Employees. This will not be relevant until the end of the 2013/14 tax year.
13. Please note that, if you run a mix of Weekly to Monthly pay, there is no such thing as an FPS run that includes all Employees because the FPS ties in to the Pay Period & Frequency. The last FPS for a weekly paid Employee will be the FPS for Week 52/53; the last FPS for a monthly paid Employee will be Month 12.
SPECIAL CASES UNDER RTI
15. Daily Casuals (harvest workers, Beaters, Pub Workers etc). The definition of a daily casual is one who is paid in cash at the end of the day and his contract of employment is only for the day. In the past, if the total earnings was less than the annual LEL, he would have been returned on the annual P38 or P38(S) form and omitted from the Payroll. The RTI rules state that all workers must be included in an FPS submission and this must occur 'on or before' the worker is paid. HMRC have now recognised that this is impossible for the daily casual worker and state he must be included on the next weekly FPS. In all other respects, the Daily Casual Worker must comply with the standard PAYE rules which include a field on the File Card to register his payments as 'Irregular'. If he works on & off over a harvest or shooting season, you use the same card and set him to 'Left' at the end of the season. Accu-Man cannot advise on what Tax Code & NI Category to use. There is a 1984 HMRC-NFU Agreement on this question but it the Designers of RTI may not have taken this into account when drawing up the rules.
16. Employees paid at longer intervals than Monthly. There are now facilities to pay quarterly, bi-annual & annual. Such Employees are automatically included on the relevant monthly pay run and use the tax allowances & NI bands for the pay frequency. This is very useful for the Director who is perhaps only paid in Month 12.
17. Non-UK Workers. There are facilities on the File Card to note that they are non-UK and to record the foreign country. You must also enter the Passport Number into a reserved HR code [PASSPORT]. Note that you do not enter a date as this is entered by the system after a successful submission.
18. ASPP. HMRC wish to tie up the SMP (mother) & ASPP (father) claimants. There are facilities to enter the Forename, Surname & NINO of the mother under reserved HR codes of [ASPPFORE], [ASPPSUR] & [ASPPNINO]. As above, do not enter a date as this is entered by the system after a successful submission.
19. Change of Employee Code (PayId). HMRC use your Employee Code in their records. If you change the code and do not inform them, they will assume it is a new Employee - even though you will not have sent Starter information and there may be Year-to-Date figures. This appears to be muddled logic from HMRC but we have to comply. For this reason, Accu-Man will not allow you to alter an Employee Code once you have started using RTI. The PayId takes the form AA-NNNN (AA refers to the Accu-Man Payroll suffix and NNNN is the four digit Accu-Man Employee Code). There are two occasions when the PayId may change from HMRC's perspective:
20. Payments to Employees after they have left. First Scenario: Error on the last Pay Run. You have closed the Pay Run and submitted the FPS (which includes the Leaver information) and then discover you missed off some pay. If you have not handed the P45 to the Employee, you may undo the run, re-close and re-submit the FPS. If you have handed the P45 to the Employee or run another pay frequency (so you cannot undo the run), follow the second Scenario rules below.
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