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Published: 14th May 2018
By Jonathan London on 22nd January 2013
How Real Time Information (RTI) impacts contractors
Boox is well on the way to gearing up for HMRC’s new RTI legislation from April 2013. Below are some details and important information about what RTI is and how it will affect you as a Limited Company Director.
What is Real-Time Information?
Real-Time Information, or RTI, is a shift in the way payroll information is submitted to HMRC.
As the name suggests, all payments relating to a company’s payroll will need to be submitted to HMRC in real-time from April 2013, with the legislation requiring all UK registered companies to be compliant.
It’s been labelled the biggest change to HMRC’s payroll reporting since World War II.
How will this affect my Limited Company
Prior to RTI, Company Directors were able to withdraw a salary from their companies throughout the tax year, with the company declaring the total of this information at Year End on the P35 form (due by 19 May each year).
This process, including the P35, is being abolished in April. This results in the need for a Directors Salary to be reported to HMRC either on the same date, or before, payment is made from your business bank account to your personal bank account.
What is Boox doing about RTI?
Updates to our Boox App, and in particular how we deal with payroll, will be rolled out in the coming weeks to ensure compliance with RTI before the deadline.
These updates will require clients confirm the level of salary payment are making to themselves each week / month. Note that once this is confirmed each time payroll is processed, we will not be able to change it.
Keep your eyes peeled for further updates.
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