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News for employers March 2013

Posted Mar 27, 01:37 PM

By darren

The new way to file payroll information with HMRC comes into force in April 2013.

In the past employers have filed an annual return of pay and tax details. As from April employers will have to file pay and tax details each time an employee is paid.

What is QBS Online doing to help?

Our aim is to make it easier for you to be in business, so our payroll service is all geared up to make complying with the new rules as easy as possible. If you use our DIY payroll service you will see new functionality which meets your obligations. If you have our fully serviced payroll option we will deal with everything for you.

Some new things to do:

Passport numbers – there is a new requirement to obtain passport numbers when a new employee starts. You should check people’s identity and right to work in the UK when you take them on in any case so this should not generally cause a problem.
National Insurance numbers – employees are sometimes unsure of their National Insurance number and HMRC now provide an online verification service. You can access this through the QBS payroll software.

Working hours – HMRC now require details of employee normal working hours. There are four options; Less than 16 hours; between 16 and 30 hours; over 30 hours; irregular/other. This is important as it will be used for the operation of the new Universal Credit system which will be coming soon.

UK Residents – under RTI you need to state whether an employee is UK resident. This will be obvious for the vast majority of employees. If you have employees who are part time, seasonal, or internationally based this may be harder to establish. A new statutory residence test is being introduced from April 2013 and there will be a tool on HMRC website for employees to check if they are UK resident.

Some common questions:

Quarterly payments of PAYE – the current practice available for small employers to pay PAYE quarterly will continue. However, monthly “employer payment summaries” will still be required.

Employees below the NI limit – if all your employees are below the limit you do not need to make any submissions, as now. If you employ anyone who is over the limit then you need to report everyone’s pay, regardless of the level of their wages. It is all or nothing.

Correcting mistakes – whilst RTI purports to be able to deal with corrections of information we suggest that payroll information is double checked before the submission is made. You may choose to give employees their payslips in advance of the actual payment so that any queries can be identified before the RTI submission is made. Unless really necessary, we suggest that mistakes are corrected by an adjustment to the following week/month’s pay rather than by re-running a payroll after the RTI submission has been made.

What people are saying

“As a relatively new start up business we are still very sensitive to costs. Recently we received a quotation from QBS Online on a “like for like” services basis with our existing accountants. We have made the decision to move to QBS which will realize a 36% reduction in our accountancy costs. This is most welcome news at a time where every penny counts.”

- Nigel Messenger, MD, Castleman UK Ltd

Using QBS has changed the way we do business. Previously we were using many suppliers to help us with things like accounts, payroll, even IT support. Now we use QBS for all manner of business procedures, which has simplified our outgoings and allowed us more time to spend on growing our business.

- DH, Haus Digital Ltd




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