Real Time InformationIf you are employing a nanny you might have received a letter from HMRC about Real Time Information (RTI) in the past few months. This is a new way of reporting PAYE that will be introduced in April 2013.
If you are currently a Nannytax client then there is really nothing to worry about. We have all of the systems for RTI in place, and you may already be reporting using RTI as we have been piloting the system since May 2012.
However, if you are using a different payroll bureau you will need to make sure that they are RTI ready. If you are currently doing your nanny's payroll yourself then you might find that things get a lot more complicated. You will have to send a report called a Full Payment Submission (FPS) to HMRC every time you pay your nanny and you may have to send a report even if you don't pay your nanny. There will be penalties for reporting late or sending inaccurate information.
It's yet another reason to use Nannytax – RTI may be coming, but we have it covered.