Planning for real-time information (RTI) reporting of payroll data to HM Revenue and Customs (HMRC) has begun in 86% of organisations, according to a survey by KPMG.
Its survey of 42 large businesses in the UK found an increase in the number of organisations preparing for RTI since March this year when a similar KPMG survey found two-thirds of firms were planning for RTI reporting, which becomes mandatory in April 2013.
The survey also found some actions that are recommended by HMRC when planning for RTI are being carried out by a small number of organisations including conducting a payroll data cleanse. Only 21% of firms said they had carried this out.
The survey also found:
- 65% of respondents have not considered the cost of RTI to their business.
- 44% said they were confident that their current payroll could cope with RTI’s requirements.
Steve Wade, director at KPMG, says: “With RTI becoming mandatory from next April, employers really do need to start implementation. If their employee data is up to date, they don’t operate multiple payrolls, have a low turnover of staff and their payroll provider is ready, the transition may be very smooth.
“But if this is not the case, they may well need to do some housekeeping before next April to reduce the chance of HMRC rejecting their data submissions and possible imposing penalties.”
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This research shows some promising statistics with 86% of businesses starting to plan for the HMRC RTI change.
However, neither the industry at large nor individual organisations should become complacent; a recent Albany Software survey highlighted that a staggering 28% of respondents had yet to do anything to prepare for the change.
Planning is a critical part of the process and it is fundamental that organisations ensure that they are up to speed with the requirements of RTI sooner rather than later.
The small, yet vital, elements of planning for the RTI transition must be done, and must be done correctly. Making sure software is RTI compliant, the payroll software is up to date and all the employee information is correct will go a long way to ensure a business’s swift and efficient move to the new RTI processes.
The Bacs element is simple, but fundamental. It is also a five-minute job so should be very low cost, if not free of charge. However, failing to be ready with plenty of time will result in organisations trying to rush the process, which could result in fundamental errors.
The pressure is on all employers to prepare now in order to minimise disruption as much as possible.