Employers adopt real-time information early

Business software provider M-hance has run real-time information (RTI) pilots with five employers to prepare them for the incoming regulations.

The early-adopter organisations are A. Andrews and Sons, AD Group, Edburton Contractors, Norking Alluminium and Randall Orchard.

M-Hance has also updated its payroll software to ensure it is compliant with RTI, ensuring employers can submit information about PAYE payments throughout the year.

From April 2013, all employers will be legally required to report pay-as-you-earn (PAYE) in real time. Organisations must provided detailed information to HM Revenue and Customs (HMRC) for each employee about any deductions, such as tax or national insurance contributions on or before the payment date, instead of delaying until the end of the tax year.

Andrew Hayward, managing director at M-hance, said: “RTI is the most radical overhaul to payroll since PAYE was introduced more than 65 years ago and is less than six months away.

“It is vital for organisations to prepare for this major change now and check that their payroll system is fully compliant. Not all software providers are automatically updating their systems to cope with RTI, which could leave employers vulnerable to being charged unnecessary penalties.

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“[Small and medium-sized enterprises] (SMEs) can be reassured that M-hance has been actively working with HMRC to ensure that our payroll software is fully compliant with RTI regulations.

“This has been reflected by the success of our RTI pilot schemes, which have enabled employers to make significant time savings during the submission process and reduce their administration costs.”