Ahead of sweeping changes to the tax system, a North East accountancy firm has been called in by Her Majesty’s Revenue and Customs (HMRC) to help lay the foundations for the impending introduction of new legislation.
Under the new Real Time Information (RTI) PAYE system, employers could soon face financial penalties if they do not comply with strict new guidelines on submitting PAYE and NIC information to HMRC.
North East accountancy, business and tax advisory firm Evolution LLP has been enlisted by HMRC as one of just 100 medium-sized employers in the UK to take part in a pilot of the scheme before it is launched nationally.
This year, Evolution is taking part in the pilot alongside 99 other firms with between 49 and 249 employees and feeding back to HMRC its findings to ensure that the RTI PAYE system works and is ready to be rolled out.
It is expected that, from April 2013, it will be mandatory for all employers to submit online their PAYE and NIC information to HMRC for every pay period, whether that is weekly, fortnightly or monthly. This will mean the end to manual submissions of information to HMRC.
As well as assisting with the pilot, Evolution has also adapted its services to help clients of all sizes to comply with the RTI system when it comes into play, allowing them to sidestep the threat of potentially hefty fines.
Meanwhile, Evolution has urged North East businesses to act fast and begin preparing for the new HMRC rules now to avert the threat of fines and avoid providing inaccurate information once it has gone live.
Tracey Courtley, payroll manager at Evolution, said: “RTI relies on very accurate employee information and employers will need to have gathered all the data in advance and set each employee up on their payroll system before they can process their pay periods.
“As the new system will affect all employers, it will have a major impact on the way in which businesses process their payroll.
“It is a very different system to the norm and as such, businesses may no longer be able to manage their payroll processes – something that has always been done in-house. Any employer which currently uses a manual payroll system will no longer be able to do so once RTI has been introduced.”
Evolution, which has offices in Wynyard and Hartlepool, provides a fully comprehensive payroll service with fixed fees and no hidden extras, making budgeting and cost management easier for its clients.
It also offers a BACS Bureau service which means it is able to pay wages direct to employees of its clients and make PAYE/NIC payments direct to HMRC, as well as pay pension deduction direct to pension providers and attachment of earnings orders.
In April this year, Evolution is sponsoring a seminar in partnership with the Tees Valley Business Club and will be presenting the facts about RTI and what the affect will be on employers. The seminar will be taking place on Thursday 26 April 2012 at The Wynyard Rooms, Wynyard Park. For more information, see www.teesvalleybc.co.uk.
For more information on RTI, please contact Tracey Courtley on 01429 272109, or visit: www.evolutionllp.com.