Is your employee data correct?
RTI is the buzz word in the tax world at the moment. The HMRC are asking are you ready?
“What do they mean by ready?”, “What is RTI?” “Why should I care?” I hear you shout.
Ready means is your employee data clean and in the correct format.
RTI is Real Time Information the HMRC initiative to capture all employee data on their data base on a regular basis electronically.
You should care because recording accurate employee data helps to make sure that your employees pay the correct amount of tax and National Insurance contributions (NICs). It also helps to protect their entitlement to certain state benefits and State Pension.
It may be your company isn’t due to go live until a date way in the future. All the same a bit of tidying up of your database would go along way in “getting ready” and keeping your employee’s in line with HMRC requirements.
There are 3 key pieces of information required by the HMRC to be correct are:-
Name Date of Birth National Insurance Number
Having them in the right format, correct and verified will make your life easier when RTI does land. As well as ensuring your employees are getting the correct entitlements from the HMRC & the Department of Work and Pensions.
To find out the correct format for each of the 3 critical pieces of information, check out my tips & techniques page at End2EndPayroll.com