RTI and directors

Hi

Apologies if this question has been asked but a search on RTI doesnt find anything (although I know there are discussions on this as I have come across them before)

Anyway we run payroll for several clients who are single director one man companies. They earn above the LEL but below the ST limit so around £625 per month.
This means there is no payments due to HMRC and involves filing a nil payments due to HMRC each quarter.

So questions
1) under the new RTI the first submission requires Hours normally worked to be reported on the first submission. Will this cause a problem if the director is earning this low amount and working say 40 hours per week. Since the min wage doesnt affect directors I assume this is ok

2) Will nil payment due still be required? I get the impression it will not be... as the FPS report will show the payroll details and an EPS report will be required if no payments are due - is this correct

3) I am assuming that the report is due to be filing on the day the payment is made or before it is paid not after. This is the implication everywhere but I want to be 100% sure. (if you are running a BACS run as well then there is a second report that is run). Given that some directors accure the wage in the DLA I am assuimg that it doesnt matter whether the money is actually paid.

4) Finally if the first FPS is rejected (or the EAS if preferred or required) which will allign the payroll data - if this is rejected because the information is incorrect in it there is not an option to resubmit this - what then happens.

thanks in advance
Hoping someone knows a little about this

Comments

  • ExcelAnt
    ExcelAnt Registered Posts: 80 ? ? ?
    Hiya,

    Are you live on RTI yet then? I can't quite tell :)

    anyway from reading there seems to be little practical information as they keeping changing elements of RTI prior to full launch in April. but..

    1) Hours worked are a range basis eg range A 0-10 range B 10-16 etc so I don't think there are minimum wage implications attached. I'd agree with your assumption

    2),............

    I abandoned this post in favour of:

    http://www.payroll-help.com/2012/02/11300-rti-employer-payment-summary/

    enjoy!
  • pirate
    pirate Registered Posts: 469
    Hi ExcelAnt

    thanks so much for this. Very useful link.

    I have enrolled in the pilot scheme but havent heard back yet.

    The link seems to imply that the EPS will also be required..I had thought that it would only be required if the amount payable to HMRC was different, ie more or less due to deductions etc. It would make sense to submit it each time and as nil payment is required then it sort of implies that a nil report on HMRC would no longer be required.

    I also am not clear (yet am sure it will become clear) that if on the first submission of the FPS the data does not align itself and is rejected by HMRC how you then correct it. But I am sure that this will become clear.

    I have phoned HMRC but as you say there information is changing and some information is conflicting .

    I have one other question which someone may know again an outstanding question with HMRC.
    Currently you do not have to register as an employer if you pay below the LEL. But as RTI requires you to report payments made to employees even if below the LEL I am assuming that now in all circumstances you should register as an employer.

    thanks for your help
  • sloshed
    sloshed Registered Posts: 100 ? ? ?
    pirate wrote: »

    I have one other question which someone may know again an outstanding question with HMRC.
    Currently you do not have to register as an employer if you pay below the LEL. But as RTI requires you to report payments made to employees even if below the LEL I am assuming that now in all circumstances you should register as an employer.

    No need to register but if you have one employee above LEL all employees need to be reported.
  • ExcelAnt
    ExcelAnt Registered Posts: 80 ? ? ?
    HI Pirate, from what I have read the support to the Pilot scheme has been great. if anFPS is rejected, its a case of correcting and resubmitting. The fun comes in when you "accidentally" submit a wrong submission that is accepted and you cant amend it :P

    Exciting times and overall I look forward to it. the system will Iron out alot of blackholes in the paye system. One I discuessed today student loans: they are paid through PAYE all year but not "handed over" so the employee incurs a year of interest before the payment is made. Under RTI hopefully payments will be made monthly and therefore less interest is paid.

    Anyway rambling. Good luck with the Pilot and please do psot your experience here! Sure lots of people will benefit
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