RTI filing

[day.dreamer]

Just wondering if an employer is obligated to operate RTI and submit FPS for employees earning below the LEL and PAYE tax thresholds ?

If not, how to report to HMRC ?

any HMRC link for the relevant guidance shall be highly appreciated.

 

[David Griffiths]

If you already file RTI because you have employees for whom it is compulsory, then you have to include all employees in the filngs.

If you don't have employees for whom you file RTI, then there is no filing for the employees outside the systsem and no report to HMRC. You don't need a PAYE scheme at all.

 

[No Business Yet]

I was not aware of this, what makes it compulsory to file real time information ? I thought is applied to everyone regardless.

 

[Tom McClelland]

I was not aware of this, what makes it compulsory to file real time information ? I thought is applied to everyone regardless.

If you don't have a PAYE scheme you don't have to file RTI.

If you have a PAYE scheme filing RTI is compulsory for all employee payments.

The moment any employee earns over the NI Lower Earnings Limit (£109/week) in any period you must start a PAYE scheme immediately if you don't already have one.

If you don't have a PAYE scheme every time an employee joins you they must fill in a P46. If they tick box C you must start a PAYE scheme immediately.

 

[Caspar]

Just wondering if an employer is obligated to operate RTI and submit FPS for employees earning below the LEL and PAYE tax thresholds ?

If not, how to report to HMRC ?

any HMRC link for the relevant guidance shall be highly appreciated.

If you are a Ltd Co, and have no other income, you should take professional advice, as it can be tax efficient to put yourself on the payroll up to your 20% tax threshold level, as this reduces taxable profit and gives you tax free cash. In this instance those earning under the LEL threshold would also have to go on.

If you are self-employed, the above does not apply to you,
Caspar