PayStream, the leading supplier of accountancy services to contractors and freelance workers, has confirmed that it is ready for the introduction of Real Time Information (RTI), the submission of Pay As You Earn data when payments are made.
As of April next year, HM Revenue & Customs (HMRC) will start to require all employers to use RTI as the organisation looks to ensure all employees pay the right amount of Income Tax and National Insurance every tax year.
PayStream has been a part of HMRC's pilot over the last few months, checking that all contractor payment and personal details are in the correct HMRC format. Additionally, all reporting and submission processes have been looked at to account for contractors' irregular payments.
Sally Burton, Head of Operations said. “One of the biggest challenges for us was the data cleanse project which ensured that all of our contractors, paid in the 12/13 tax year, had correct personal details in the required HMRC format. Our payroll and reporting systems had to be tailored to capture the additional fields for RTI that were not required under the year-end processes.”
Sally adds, “We also had to ensure that our reporting and submissions supported the added complications related to irregular payments such as multiple payments made in the same pay period and bulk payments covering multi-pay periods, all of which have to be declared in the RTI submission.”
The business's My Max and limited company contractors will not see a difference to the work PayStream does for them. HMRC will have their full employment history, which means they should not pay too much tax again.
Paul Malley, Managing Director of PayStream, says “Agencies are being warned that RTI will affect every company irrespective of its size. While PayStream contractors will be unaffected as we are already prepared for RTI, payroll teams across the recruitment industry must be aware of the changes RTI that will bring. Failure to do so could result in heavy fines if organisations are not ready for it when RTI becomes compulsory from October 2013”.
Paul adds, “If you are unsure of how to prepare your company for RTI then we recommend that you contact our Legal Director, Julian Ball on 0161 929 6000”