QuickBooks Payroll RTI
RTI – Real Time Information
From 6th April 2013 HMRC are introducing RTI which means that all payroll payments have to be submitted to the Inland Revenue as the payments are made – hence the name Real Time Information. If you use QuickBooks for your payroll you need to be preparing for this now.
What is RTI and why is it being introduced?
RTI is the name of the scheme that HMRC are introducing in April 2013 that involves sending details to HMRC every time you pay an employee, at the time you pay them. By providing this information in real time, HMRC will be able to tell the employer how much tax they should pay each month.
HMRC is introducing RTI so that the Pay As You Earn (PAYE) system can be modernised and keep pace with changes to modern working patterns. Nowadays, may people have more than one job or pension and people change jobs more frequently. This has led to people sometimes paying the wrong amount of tax. By sending HMRC more up to date information, it will be much easier to ensure that deductions for tax, National Insurance and student loans are accurate.
How to get ready for RTI Payroll
If you are using QuickBooks payroll you will need to update to QuickBooks 2013. Only QuickBooks 2013’s payroll software allows you to easily comply with Inland Revenue’s RTI scheme. If you have older versions of QuickBooks, ie QuickBooks 2010 or QuickBooks 2012, then you will not be able to use QuickBooks Payroll to file a Real Time Information return.
The HMRC website provide details of how to get started with RTI.
All the personal and tax details of your employees need to be accurate. The details need to be accurate before the April deadline. In the QuickBooks 2013 software there is a software routine called the RTI Wizard. This checks that you have the employee’s details correct.
QuickBooks Payroll video
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