2013/14 Payroll

The new 2013/14 payroll in FreeAgent enables employers to report PAYE information to HMRC in real time.

If you're an employer, from April 2013 you’re required to send details to HMRC every time you pay an employee, at the time you pay them. You may have already heard about 'Real Time Information' or 'RTI' – the new FreeAgent Payroll is RTI-ready and will be able to send this information electronically for you.

FreeAgent calculates the PAYE and NI for both company employees and directors. You can then view or download your company payslips.

To use RTI you’ll first need to add additional details for each employee into your FreeAgent account. Please see our guide to setting up payroll to get started, or our frequently asked questions for support.

FreeAgent Real Time Information Payroll

FreeAgent will support both FPS (Full Payment Submission) and EPS (Employer Payment Summary). This means FreeAgent can make a standard payroll submission including payslips, starter and leaver information, and also handle any submissions made when no employees have been paid.

For our initial release we won’t be supporting the notifying of recovered statutory amounts and NIC compensation. We also won’t be supporting EAS submission (employer alignment submission) or EYU (earlier year update). We also don’t support some specialist payroll facilities – see the feature index for full details of what we do and don’t support.

If you pay staff via BACS

If you pay staff via BACS and have your own Service User Number (whether you use BACS Approved Solution Software or you pay indirectly via a BACS Approved Bureau) you will not be able to use FreeAgent to file RTI payroll. If you pay staff via BACS and do not have your own Service User Number you can use FreeAgent to file RTI payroll.

Preparing for Real Time Information Payroll

1. Register for PAYE Online

In order to use RTI and the new FreeAgent Payroll you will need to register for PAYE Online with HMRC.

2. Check the HMRC PAYE requirements

Learn more about getting your business ready to operate PAYE in real time with the HMRC guide - preparing to operate PAYE in real time.

Feature Index

Supported

Not Supported

FPS (Full Payment Submission) EPS (Employer Payment Summary) Monthly Pay Student Loans Payroll Giving Statutory Maternity Pay* Statutory Adoption Pay* Ordinary Statutory Paternity Pay* Additional Statutory Paternity Pay* Statutory Sick Pay* Week 1 Month 1 tax deductions Director/Employee NICs (progressively for directors/equal payments for employees) NI Category letters : A, B, C, J, X NIC calculations for employees over 65 The Irregular work pattern indicator Regular working hours (for calculation of tax credits)

EAS (Employer Alignment Submission) EYU (Earlier Year Update) Weekly/Two Weekly/Four Weekly Pay Attachments of Earnings Employees contracted out of the state pension Seconded foreign employees PAYE schemes run by pension funds Payments covering a number of payment periods The National Insurance holiday scheme Expenses reimbursed in the same payment as payroll Benefits in Kind taxed through payroll Strike and absence pay deductions

* FreeAgent calculates Tax and NI for these items based on the figures you provide – you can use HMRC's free online tools to calculate the figures that you'll need to enter into FreeAgent