The Income tax and National Insurance Contributions are deducted from an employees gross pay and paid to the HMRC monthly or quarterly. There are penalties for late submission of PAYE Returns and interest is charged by the HMRC on late payments.
PAYE in Real Time (PAYE RTI)
Real Time Information (RTI) is a system introduced by HM Revenue & Customs (HMRC) in the UK for the reporting of payroll information in real time. Under RTI, employers must send payroll information to HMRC every time they pay their employees, rather than just once a year as was previously the case.
Pay As You Earn (PAYE) is the UK’s system for collecting Income Tax and National Insurance Contributions (NICs) from employees’ pay. RTI is integrated with the PAYE system, meaning that employers must report payroll information to HMRC using RTI every time they pay their employees.
The RTI return for PAYE includes details of the amounts paid to each employee, any deductions made, and the amounts of Income Tax and NICs due. The information is used by HMRC to calculate each employee’s tax liability and to keep records of their NICs.
By reporting payroll information in real time, RTI helps to ensure that employees’ tax and NICs records are up-to-date and accurate, and reduces the risk of errors or discrepancies.
We take care of the filing aspects and advise you on how much to pay your employees (net pay) and the HMRC (PAYE and National Insurance).
The costs of non-compliance and errors in payroll can be costly. Taxlab employ payroll specialists we can take care of the complexities of running an efficient payroll process.