PAYE and NI Real Time Information (RTI) and other PAYE and national insurance (NI) planning guides. … This content is only available to our registered users. Please log in or create a free account, to gain access to our extensive business, personal and tax guides. Login (Forgotten login?) Create new account 2012 PAYE update From 2012, many significant changes will be made to the operation of the PAYE system. There are also changes from 2013 you may wish to consider. An introduction to PAYE Whether an individual is an employee or self-employed in a particular situation is a question of fact depending on the terms under which he or she works. When you engage someone to do work for you, you have to decide whether or not to apply the PAYE rules. It is up to you to get it right or suffer the consequences. Real-Time Information Real-time information (RTI) is a system introduced by HMRC for the reporting of payroll information, which requires employers and pension providers to provide detailed information to HMRC every time employees are paid rather than through the year end return. Employing your spouse When considering the overall tax position of your family, it is worth considering if you can justify employing your spouse in your business. Tax-free gifts to staff In an environment where most employee 'perks' are subject to tax it may be helpful for you as an employer to be aware of the few concessions that have been made by HMRC. Late payment of PAYE Employers need to be aware of PAYE late payment penalties. Businesses are being reminded that they may face a penalty charge if they are late in paying their PAYE deductions in full. Late returns penalties Forms P14, P35, P38 and P38A - These forms are due to be filed by 19 May each year. If not filed on time a fine of up to £1,200 per 50 employees. This penalty may be reduced dependent on the circumstances. Don't pay too much national insurance If you have income from more than one job, or if you have self employment income as well as being employed, you should take care to ensure that you do not pay more in national insurance contributions than you need to. National insurance planning Details of class 1, class 1A, dividends instead of salary and action to save NICs. Benefits in kind and expenses payments Benefits in kind are assessed on all directors and employees. Payslip basics Most employees receive payslips and take them for granted, but what are the legal requirements? How to survive a PAYE and NIC inspection However confident you are that your records are complete and well maintained, a PAYE / NIC inspection might still catch you unawares. Here are some pointers to help you. Tax and employment Many people can go for years paying too much (or, perhaps more worryingly, too little) tax. It is important to know exactly how much you are paying or you could face repercussions later. Employee share schemes Employee share schemes, such as share incentive plans (SIPs) and Save As You Earn (SAYE) schemes, are increasingly being used by firms to reward good staff performance and retain workers, and make an attractive remuneration package when recruiting.