ÀÏ˾»úÎçÒ¹¸£Àû

RTI ― reporting ‘on or before’ time of payment

Produced by Tolley in association with
Employment Tax
Guidance

RTI ― reporting ‘on or before’ time of payment

Produced by Tolley in association with
Employment Tax
Guidance
imgtext

Most employers are required to report payroll information to HMRC electronically in real time under real time information (RTI). See the Real time information guidance note. The most usual report made to HMRC under this system is the full payment submission (FPS) which must be transmitted to HMRC on or before the employer makes a payment to employees, ie on or before payday. This is commonly referred to as the ‘on or before’ rule. The ‘on or before’ rule is an important concept to understand.

This guidance note looks at the number of the problem areas that employers regularly encounter in trying to apply the ‘on or before’ rule and draws together exceptions to the rule and HMRC’s concessions and guidance.

Exceptions to ‘on or before’ rule

Some of the exceptions listed below derive from the PAYE regulations and others relate to HMRC statements about what it will accept. The main exceptions are listed in a table on the GOV.UK website.

Payment to employees where earnings are less than £123 per week

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+â„¢
Ian Holloway
Ian Holloway

Payroll and Reward Consultant , Employment Tax, Personal Tax


Ian has been in the payroll profession for over 30 years, processing payrolls from all sectors, large and small. He moved from hands-on exposure in 2011 to become involved in educating the profession. His wide-ranging experience and up-to-date knowledge ensures he can impart this information to UK professionals through course material, social media, newsletters and face-to-face presentations.However, educating the profession cannot be achieved without knowing how the profession works on a day-to-day basis and involvement with hands-on administration is essential. So, today, Ian operates as a consultant and advisor and is involved with a vital aspect of the payroll and reward environment, that of working with the software that does a lot of the hard work for the profession.The return to being involved in a hands-on environment has not stopped his desire to inform, educate and train the UK payroll profession. Indeed, this is now better-achieved, as he can draw on real processing situations.Ian approaches education and communication very much from the perspective of how this will impact the software, the employer and the worker. So, whilst the legislation is vital, compliance and effective communication are paramount.Ian is Companion of the Institute for Certified Bookkeepers (ICB), committee member of the British Computer Society (BCS), a committee members of the ICAEW’s Tax Faculty and a Fellow member of the Chartered Institute of Payroll Professionals (CIPP).

Powered by
  • 29 Oct 2024 11:40

Popular Articles

SEIS and EIS ― overview

SEIS and EIS ― overviewThe seed enterprise investment scheme (SEIS) and enterprise investment scheme (EIS) are very similar schemes which offer substantial tax incentives to investors in companies which qualify. The tax incentives for SEIS and EIS investments are intended to encourage investment in

14 Jul 2020 13:31 | Produced by Tolley Read more Read more

Holdover relief for disposals by trustees

Holdover relief for disposals by trusteesOverviewWhere a capital gain has been realised on an asset that has been disposed of and that disposal was not for full value (that is not in an arm’s length sale) then holdover relief may be available. This will happen when trustees appoint capital assets

14 Jul 2020 11:54 | Produced by Tolley Read more Read more

Gilts

Gilts‘Gilts’ are securities that are also known by a number of different names (eg gilt-edged securities, Government securities or treasury stock).The Government sells gilts to fund the deficit between public spending and tax receipts. Normally, the Government pays interest to the holder of the gilt

14 Jul 2020 11:48 | Produced by Tolley Read more Read more