In order to facilitate your migration to RTI, which is due to come into effect from April 2013, the latest version of the QTAC Payroll software for 2012-2013 tax year has had additional fields added. Some of these will be need to be completed when you will be legally required to submit RTI information to HMRC from April 2013.
We have also provided tools in the Company>Bulk Amendments menu options to help you set these fields.
We strongly suggest that you obtain the required information and enter it into your payroll before the end of the 2012-2013 tax year.
The new fields are:-
Normal Hours Worked
You will find that all employees are set to the ‘30 hours or more’ option automatically.
You should use whichever of the four bandings is most appropriate to the individual, according to the number of hours you expect them to normally work in a week.
If your employee is on paid leave, for example annual leave or sick leave, please report the normal hours worked, given its ordinary everyday meaning of regularly, usually, typically. If you do not consider any of the first 3 options are appropriate then select ‘Other’.
In the case of a teacher who normally works 30 or more hours a week during term time then that is the selection that should be used during school holidays.
HMRC will check if employees have not been paid for a specific period of time (expected to be 13 weeks) and will treat them as having left that employment. To avoid that happening for employees who do not get paid regularly, check the irregular payment indicator in the employee Pay Rates tab in Employee Maintenance. An amendment will not be classed as an irregular payment.
As an employer, you need to ensure that each prospective worker is eligible to work in the UK before their employment commences. When you make the necessary checks, if a prospective employee provides a passport the number should be noted and recorded in this field. Note that this is not a mandatory field and is not required for existing employees.
HMRC will no longer be using the employee works/staff number to recognise employee employments within a company. Where an employee has two or more separate employments within a company these should be distinguished by providing a unique entry in the Payroll ID field. Where an employee has two separate employment contracts with the same employer the Payroll ID will indicate to HMRC which employment a submission relates to.
Note that within our software if a new employee is added with no NI number a random PayrollID will be generated and used to identify the employee in all future submissions to HMRC.
Existing Employee Data
We have provided a report which will be found in the menu option Reports>Employee>RTI Data Check to indicate employees where their current information may be incorrect or incomplete. This will indicate employees who do NOT have:-
full forenames, only initials
an employment start date
a date of birth, or the date of birth is over 140 years ago
an NI number
any address where the employee has no NI number
The data for these employees should be corrected before you start submitting RTI information since this type of data is likely to cause a rejection of the RTI messages, or a query from HMRC.
The guidance from HMRC relating to this information is as follows:-
Always provide the individual's full and official forename(s) and not just their initial(s).
Make sure that their forename(s) and surname are in the correct fields.
Check that you have spelt the names correctly. Include a middle name if the person has one, for example 'John Michael Smith'. Simply putting an initial such as 'J' makes it difficult for HMRC to trace the correct account.
Check an official document to ensure that you have spelt the name right - 'Smith' and not 'Smyth'.
Date of birth
Always provide the correct date of birth. Do not enter a default date or make up date of birth
National Insurance number
Always enter the correct National Insurance number. Do not make up a number, use a default number or use someone else's. The number must begin with two letters, followed by six digits and end with a letter which will be either A, B, C or D. No matter what the reasons are that lead to uncertainty over an employee's National Insurance number, you must take action to ensure you give HMRC the correct number.
If you have any doubts about the validity of a National Insurance number you can trace the correct number using the HMRC National Insurance tracing service by completing Form CA6855, which is available to download from the HMRC website http://www.hmrc.gov.uk/forms/ca6855.pdf
To make sure you have the correct details, wherever possible please check the information you need from an official source such as:
• HMRC and /or Department for Work and Pensions documentation
• Passport documentation
• a birth certificate
P45 to be retained
After consultation with employers HMRC have decided that the P45 starter/leaver process will remain unchanged until all employers are submitting RTI information. The process will be reviewed again at that point in time.
However, note that the submission of P45(1) and P45(3) information to HMRC will not be necessary when a company is submitting RTI information, and that the paper forms are being retained to achieve constancy of information transfer between employers when employees change employments.
RTI Pilot goes live
By 11:00 am on the 11th April 2012 the first 2 RTI submissions had been made to HMRC.