Getting ready for RTI:
Does RTI apply to me?
RTI applies to anyone who is registered for PAYE (or needs to be). This means:
, if you employ sta (see below for a few exceptions)
, if you do your work through a limited company
(assuming you pay yourself a salary or reimburse expenses)
, if you are a sole trader or a partnership that does not employ sta.
If you are a director of a limited company,
remember that even if your company
doesn’t pay you a salary, you still need to operate RTI if you receive any expensepayments. Because you must report these expenses on form P11D each
year, you need to have a PAYE scheme in place and thus fall under RTI.
I only employ casual sta or sta without PAYE
deductions. Does RTI still apply to me?
Previously you could keep low-paid employees o the PAYE system,
and only use PAYE for those that required it. Under RTI, if you have
sta for whom RTI applies, then you have to apply it for
RTI doesn’t apply if all of your sta:
do not receive expense payments.
do not receive benets that are not paid in cash (forexample, health insurance or company cars).
are paid below the Lower Earnings Limit for National Insurance.This will be £109.00 a week for 2013/14, or £472.33 a month.
do not need PAYE deducting. You must deduct PAYE if you
have a tax code for your employee, for example:
if you are using a tax code when RTI comes in.
•if your employee gives you a P45. •
if your employee gives you a P46 with box C
ticked in the bottom left-hand corner.
Otherwise, RTI does still apply.
These exceptions might apply, for example, to casual sta, or
students, or people who only do a couple of hours a week.Don’t forget though, if you are the director of a limitedcompany and your company needs to operate RTI for you, yourcompany will also need to operate RTI for
Nt fr limitd cmpany dirctrs