Unless you’re a tax geek, like us here at Stafftax,  “Real Time Information submission” probably doesn’t sound very exciting.  But if you employ someone in your home, like a housekeeper, a carer, or a gardener, then RTI matters.  Here’s why. And how to handle it.

RTI stands for Real Time Information. It’s HMRC’s way of keeping tabs on what your employee earns and what tax you’re paying. Every time you pay your employee, even if it’s the same amount each time, you will need to submit a report to HMRC.  It has to be sent on or before the day you pay them, yes, every time, and no, it can’t wait.

Doing It Yourself

If you’re tax savvy, curious, or just love a spreadsheet, you might consider handling payroll yourself.  You can use HMRC’s Basic PAYE Tools. They’re free, they do what they say on the tin, but they are basic: no frills, and occasionally baffling.

To run your own DIY payroll, you’ll need to:

• Register as an employer
• Enter pay details into the software
• Submit the RTI
• Make payslips
• Keep records
• Understand error messages if something goes wrong, and how to fix them.

If something unexpected comes up,  like an incorrect reference number, or missing data, HMRC won’t send a friendly reminder. You’ll likely get a fine, and unless you check, you may not know it has failed, or why.

Using a Payroll Provider

Enter: payroll professionals like us here at Stafftax!

We can do all this for you. You hand over the numbers. We do the maths. We file the submissions. And most importantly, we pick up the phone and talk to HMRC if anything irregular happens. We’ve seen all the error codes before, and we know how to sort things out when one pops up.

At Stafftax we even give your employee their own login area where they can access their payslips, and much more – meaning you’ll never have to send (or resend) a payslip.

If you’ve got one employee, working fixed hours, and you have the time and enthusiasm for tax admin, you could be just fine doing your employee’s payroll yourself.

If your employee’s pay varies each week or month, if you’re short on time, or if the words “tax code” sound highly unappealing, it could be worth your while to choose a home payroll service.  Handing it over to the experts would be worth every penny, for your peace of mind. 

Here at Stafftax, we offer a variety of packages, so you can choose the payroll package that meets your needs (and suits your budget). Whichever route you go, the important thing to understand is that RTI is not optional. You’ve got to do it, and get it right.  Your future self – and your employee – will thank you.