THE biggest overhaul to the Pay As You Earn (PAYE) system in almost 70 years is approaching fast and HMRC says it’s time for employers to get ready.
From April, employers will be required to move to a new way of reporting PAYE. For the vast majority of employers, the first ‘real time’ return will be the first employee payday on or after 6 April 2013.
Employers’ payroll software will need to calculate their PAYE and send the PAYE information to HMRC as part of a routine payroll operation.
Instead of sending in the P14 and P35 forms at the end of the year employers or their agents will have to
– send a Full Payment Submission (FPS) each time, or before they pay employees
– send an Employer Payment Summary each month, which shows any adjustments to the amount they owe
HMRC’s free basic software, Basic PAYE Tools, will be available for the smallest employers (with nine or fewer employees).
HMRC says that to help with the transition it will not be imposing any penalties for in-year late reporting until 2014.
More details from www.hmrc.gov.uk/payerti/getting-started/index.htm
