If an employer is operating a PAYE scheme, then under Real Time Information (RTI) they will have to inform HM Revenue & Customs (HMRC) about payments of earnings to all employees- even where an employee earns less than the Lower Earnings Limit (currently £107 per week). This is a significant change from the current requirements.
Under RTI, employers will be send HMRC information about employees' pay when- or before payments are made. This should mean more employees will pay the right amount of tax and National Insurance in the tax year.
So you will need to obtain the following information from your so-called casual staff members:
- National Insurance number
- Second forename
- Date of birth
- Address including the postcode
- Payroll ID/ staff number
- Number of normal hours worked
You should verify their identity against official documents such as birth certificates, driving licences or passports. If you should happen to see their passport, keep a note of their passport number- as this is a voluntary field under RTI and is also required if you are confirming they have been granted permission to work in the UK.
Your local TaxAssist Accountant would be happy to take care of the transition to RTI and maintain your payroll on a day-to-day basis. Please feel free to contact them if you would like to discuss the payroll services they can offer in more detail.
By Jo Nockels
Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.