Resources

RTI Submissions: What You Need to Know

Blog, Time Management
RTI Submissions: What You Need to Know

Limited companies are required by law to make RTI (real time information) submissions to HMRC on a regular basis, detailing salaries, PAYE and NI. As a freelancer or contractor running a director-only company, this may seem like an unnecessary burden, but fail to keep up with RTI submissions and you could face penalties.

However, RTI doesn’t need to be a headache. Bright Ideas Accountancy are here to tell you everything you need to know, and how to simplify your submissions to take a weight off your mind…

 

What are RTI submissions?

In April 2013, the government brought in new legislation to make PAYE submissions more accurate and efficient. It was designed to solve the common issues of over- and underpayment, and prevent fraud in limited companies.

As the owner of a limited company, you need to make RTI submissions along with your PAYE information, every time you withdraw funds from the business. So if you’re on a monthly payroll, you’ll need to send your RTI on or before the day you get paid.

Failing to submit this information can lead to penalties. Contractors and freelancers operating under limited companies fall under the micro business category, meaning the threat of this penalty amounts to £100 per month.

How to submit your RTI

It may sound scary, but RTI submissions really aren’t as bad as they sound – if you have the right support, that is. Your Full Payment Submission (FPS) form can be sent electronically to HMRC, detailing how much you have been paid, and outlining deductions such as tax and National Insurance.

In fact, you don’t even need to fill out a form. By choosing the right accounting and payroll software, your RTI can be filed automatically based on the payroll details saved in your account. So you don’t have to spend time filling out a form each month to send HMRC, and that’s surely a good thing.

Getting your RTI sorted

However, not all payroll software operates on equal grounds. Besides, there’s rarely a one-size-fits-all solution for a freelancer or contractor, which is why it’s a smart idea to consult a specialist accountant when incorporating your business.

Bright Ideas Accountancy can help you make the switch to payroll if you’re currently a sole trader or operating under an umbrella company, ensuring you avoid those pesky penalties from the beginning. We recommend FreeAgent for our clients, as a simple and effective way to manage your bookkeeping.

It’s easy to get caught up in the finer details of tax and accounting, but the benefits of incorporating your business far outweigh the negatives. Whether you’ve just set up your limited company or you’re thinking of making the switch, Bright Ideas Accountancy can help.

To have a chat with our friendly contractor accountants, call 0161 669 4221 or email info@biaccountancy.com today. We would be happy to answer any questions you have about RTI submissions, limited companies or dealing with HMRC.

To book in a FREE consultation, contact us today on 0161 669 4221 or info@biaccountancy.com.

Stay up to date on what’s new at Bright Ideas.

    Step 1 of 3

    Thanks for choosing Bright Ideas!

    Let’s get started with a few details…

    (*) Required field
    The field is required
    The field is required
    Email address is invalid
    The field is required
    By submitting you agree to our Privacy Policy

    How can we help?

    I need accounting support for…

    (*) Required field
    The field is required
    The field is required
    The field is required
    The field is required
    The field is required
    £The field is required
    The field is required
    The field is required

    When’s good for you?

    Pick a slot…

    (*) Required field
    The field is required
    The field is required
    The field is required
    BACKLet's get started
    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

      Step 1 of 2

      Become a client

      Let Bright Ideas take care of your accounting. We’re guaranteed to have a solution here that suits your needs. Simply pick the package you like best and we’ll take care of the rest.

      You can sign up for our services right now. Complete the form below and we’ll be in touch the same day (if received before 4pm).

      (*) Required field
      The field is required
      The field is required
      The field is required
      The field is required
      Email address is invalid
      The field is required
      The field is required
      The field is required
      The field is required
      By submitting you agree to our Privacy Policy

      Let’s talk about your business

      Setting up a new business? Already trading as a Limited Company? No matter what your circumstances, Bright Ideas can help.

      (*) Required field
      The field is required
      The field is required
      The field is required
      The field is required

      Included in our company formation service is:

      • Limited Company name of your choice
      • Memorandum and articles of association
      • VAT, PAYE and Corporation Tax registration
      • Certificate of incorporation and Share certificate
      • Companies house registration
      (*) Required field
      The field is required
      The field is required
      The field is required
      The field is required
      The field is required

      Director/Shareholder

      (*) Required field
      The field is required
      The field is required
      The field is required
      The field is required
      The field is required
      The field is required
      The field is required
      The field is required
      The field is required
      The field is required

      Additional director or shareholder (Should only be completed for an additional person)

      The field is required
      The field is required
      The field is required
      The field is required
      The field is required
      The field is required
      The field is required
      The field is required
      The field is required
      The field is required
      The field is required

      Declaration acceptance *

      The field is required
      The field is required
      BACKLet's get started
      This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

         

        Request a Call Back

        (*) Required field
        The field is required
        The field is required
        Email address is invalid
        The field is required
        By submitting you agree to our Privacy Policy
        This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

        Pin It on Pinterest

        Shares
        Share This

        Share This

        Share this post with your friends!