Real time PAYE question

dlh68

Hi everyone, sorry if I'm in the wrong section.

Just a quick question.

I know the PAYE system is changing to real time in April but will I still be able to get paid weekly by my employer like I always have?

Many thanks

molerat

Yes, why would it be any different ?

longforgotten

I've heard the additional work of RT may result in changing over to monthly pay if all payroll staff agreeable..............

dlh68

molerat wrote: »

Yes, why would it be any different ?

I heard it would have to be monthly. Am glad though that weekly is ok, much prefer weekly pay.

System

There shouldn't be any extra work (or possibly just a minimal amount) as most software packages now have an RTI version which files on line virtually automatically

agrinnall

What does your employer say? Has there been any indication that payment frequency will change? I'm sure they would be allowed to change it if they want to, but I would expect them to give you reasonable notice (although who defines reasonable is anybody's guess).

Wywth

agrinnall wrote: »

What does your employer say? Has there been any indication that payment frequency will change? I'm sure they would be allowed to change it if they want to, but I would expect them to give you reasonable notice (although who defines reasonable is anybody's guess).

I'm sure they would not be allowed to do so without prior agreement

(This may be in the form of a collective bargaining agreement with the trade union if that is the norm for your employment)

Otherwise they would be in breach of contract - the contract of employment with the OP.

chrismac1

This is a highly topical issue which has seen some very long threads on accountancy websites. Realistically, weekly pay IS going to result in increased costs under RTI for most employers for a variety of reasons.

My clients have been encouraged to move to monthly pay and all have agreed to do so. This must be agreed with staff in advance, for the typical £8 per hour bar staff person there is a £20 per year NI saving so this is one factor.

Another factor is setting up approved loan repayment schemes so that cashflow is not an issue for weekly paid people who feel unable to last to the end of the month.

Note that RTI is going to one Almighty mess. You don't have to take my word for this, Lin Homer the head of HMRC has been quoted as saying there will be teething problems for the first six months which is HMRC speak for an Almighty mess.

Note that if well handled the transition from weekly to monthly is no big deal. I brought this in back in 1995 for a metal bashing company with 500 weekly paid staff. Although the GMB were up in arms when it was initially put to them, the way we implemented it we got a grand total of 3 complaints from staff in the first 6 months.

chrisbur

chrismac1 wrote: »

This must be agreed with staff in advance, for the typical £8 per hour bar staff person there is a £20 per year NI saving so this is one factor.

I cannot see where this saving is coming from, can you satisfy my curiosity by explaining please?

LurkerTurnedPoster

chrismac1 wrote: »

Note that RTI is going to one Almighty mess. You don't have to take my word for this, Lin Homer the head of HMRC has been quoted as saying there will be teething problems for the first six months which is HMRC speak for an Almighty mess.

You do make me laugh Chris.

dlh68

Thanks for the replies guys.

My employer is very easy going and would happily pay me as I prefer. I had in my head they HAD to pay monthly, Chinese whispers I suppose but glad you've all helped clear it up.

Many thanks