The Practical Guide to Limited Company Tax
If you have chosen to operate your business as a limited com...
By Jonathan London on 5th April 2013
We’re sure that you’ll have seen our recent communications about RTI. We have been working on these for the last few months to ensure that our accounting processes are quick, simple and compliant. If you’re an existing Boox Client you need to know how HMRC’s new RTI rules, which come into effect on 6 April 2013, affect you and how you operate your company and your Payroll.
Just a little reminder, the main purpose of RTI – introduced by HMRC, is to ensure that HMRC receives your payroll information On or Before each time a payment is made to an employee.
Yes and yes. We’ve been developing our software over the last few months to submit your Payroll information to HMRC every time you choose to pay yourself.
Until 5 April 2013, each week the Boox App processed your Accounting Breakdown and sent this in an email to you so you could log onto your internet business banking to pay yourself.
From 6 April 2013, the Boox App needs your instruction that you have/or are about to pay your Director’s Salary. So the Accounting Breakdown has been reconfigured to process your Director’s Salary payment to comply with RTI.
The weekly email will no longer contain the Accounting Breakdown, you will need to log into the Boox App and go to Pay Yourself > Boox Wizard to view the latest pay information. Within the Boox Wizard you’ll have 2 new options, which appear at the top of each pay breakdown (see image).
Pay Now – by clicking Pay Now, you will be confirming that you are paying your salary that day. This will trigger your RTI submission to HMRC, and the Boox software will do the rest.
You will need to confirm you are happy to submit this information. Simply click through the two messages which appear.
If you proceed and select ‘Pay Now’, the amount you pay yourself as a salary MUST match the breakdown as outlined on your pay information, as this is what the software will be submitting to HMRC. If you do not make the same payments (so they match on the bank statements), you risk future unnecessary enquiries by HMRC inspectors.
Pay Later – if you’re not ready to pay the salary immediately (perhaps you’re still waiting for the funds to arrive in your business bank account), clicking Pay Later will close the window and no RTI submission will be made. It is however important that you come back into the app when you have the funds and click Pay Now before you make the transfer to your personal bank account.
We’ve produced a Step by step guide to the changes you will need to follow, which can be accessed by clicking the image here.
Alongside the RTI changes, we’re also releasing some other exciting new features in our online Accounting App:
Thank you to all our clients for your continued support during these changes. If you have any questions with regard to RTI, our portal changes, or any of our new features, then don’t hesitate to contact your client accountant.
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