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RTI one month away

06.03.13

A month today, agencies using the Pay As You Earn (PAYE) payment option for their contractors will have to submit information to HMRC every time a contractor is paid, rather than just annually. It's a move that has been described as 'one of the most fundamental changes to the PAYE tax system since 1944'.

Additionally, if you are a contractor taking your salary from your own personal limited company, you will have to submit your PAYE information online for every payment in order to comply with Real Time Information (RTI). If you look after your own books, this will mean more hassle and added work. If you hire your own accountant, the price for their services is likely to rise according to a study conducted by IRIS Accountancy Solutions.

RTI is designed to help PAYE to work more effectively and to allow the new benefits system to run seamlessly as up-to-date information will be available to HMRC. However, the system has been criticised due to its high administrative costs, as well as the fact it has been introduced into the tax system very quickly.   

It is believed that the introduction of RTI will allow HMRC to see and act upon any tax irregularities for PAYE earners much quicker than they can using the current system.

One of the main benefits of using Consort's services is the ability to be paid gross as a sole trader, rather than using the less beneficial PAYE system. This means by using Consort, you don't have to worry about RTI. Become part of the Consort team and pay your tax annually with the ability of offsetting any work-related costs against your gross earnings.  

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