Bacsactive IP

HMRC RTI Latest Information

As you may be aware, Her Majesty’s Revenue and Customs (HMRC) are soon to be introducing a change to the way payroll payments are made via Bacs.

Under the new rules companies submitting payroll payments to Bacs will need to include additional information along with the Bacs transaction including the payee’s tax code, pay to date and tax to date amongst other items of information. These new rules have been named RTI or Real Time Information by HMRC.

Migration is scheduled to start in April 2012 with an aim to have all companies migrated by the end of 2013.

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HMRC and Bacs aim to have all companies submitting payroll payments via Bacs submitting the additional information under the new rules by the end of 2013. Our Bacs software development teams are currently working on additional functionality to be made available to all customers. This functionality will enable customers to continue to submit their payroll payments via Bacs while also including the additional information and complying with the new rules. The functionality will be available all customers on our Web Enterprise platform.

Migration Timetable

Stage 1
From 11th April 12 - there will be a Controlled Go live (CGL) of 10 employers. Those employers and software providers participating have been informed.  This will be very closely monitored in order to assist the employer experience.
From May 12 - A further 300 employers will join the pilot. An invitation will be sent by email one month in advance to advise the employer of the date to join and what they need to do in preparation for this. Again there will be close monitoring, with individual employers having access to a dedicated team to provide migration support 

Stage 2
July to September 12 - 1300 additional employers will join the pilot using software used in Stage 1 and some new software products. These employers will be operating on a “self serve” basis, testing HMRC on-line guidance before any HMRC intervention.
October 12 – HMRC’s scheduled autumn Enterprise Release means that no new products or employers will join RTI in this period.

Stage 3
November 12 to March 13 up to 250,000 employers will join RTI to test the capacity of both HMRC systems and the pilot commercial software using products tested in the earlier pilot stages.  We are not allowing any new products to join the pilot during this period. We will also be asking developers to provide appropriate support mechanisms for their volunteer employers during this stage.  Please note that we will not be migrating employers in the months of January & February 13 due to other key business events e.g. the annual coding review.

For the purpose of pilot stages 2 and 3, HMRC cannot accept submissions from employers operating multiple payrolls on a single Employer Reference unless they are able to submit a single EAS or first FPS that covers all employees in the Employer’s PAYE Reference.

Stage 4
April 13 – We are currently finalising our approach and will provide further information as soon as possible.

For more information about how the new RTI information fits in with the government’s plans for payroll processing please refer to the following link:

White Paper on Universal Credit: http://www.publications.parliament.uk/pa/cm201011/cmselect/cmworpen/writev/whitepap/uc37.htm

Also please visit theHMRC Website.

 

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If you want to know more about this subject and would like to keep informed of the latest developments, please fill in the following form or call us now on 0845 120 8050.

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