Payroll Real Time Information (RTI)

From April 2013 HM Revenue & Customs (HMRC) will introduce a major, mandatory change in the way Pay As You Earn (PAYE) information is reported to them through Real Time Information (RTI).

RTI is being introduced to improve the operation of PAYE and is aimed at making it easier to ensure individuals pay the right tax and at the right time. RTI will mean the information normally sent at the year end will actually be sent to HMRC before, or at the same time, as a payment is made to an employee. This move will see the end of the current Annual Employer Return (P35) process. In addition, RTI will remove much of the uncertainty that leads to errors in the Tax Credits system; and support the introduction of the Universal Credit system from October 2013.

Under RTI, employers or their payroll agents will submit information about PAYE liabilities throughout the year as part of the payroll process. Payroll software will collect the necessary information and send it to HMRC online each payroll period. The underlying process for PAYE – employers making deductions and paying them to HMRC and pension providers – will not change, nor will the payment deadlines. Rather, RTI will provide up to date information direct to HMRC, thereby reducing error, fraud and the potential for under/over payments of tax by individuals.

What will RTI do?

  • Make the PAYE process simpler for employers and HMRC.
  • Make PAYE more accurate for individuals.
  • Enable HMRC to pursue late payments more effectively.
  • Reduce Tax Credits error and fraud.
  • Support the payment of Universal Credits.

Contact Us:

There will be strict submission deadlines for RTI, but please be assured that Brookman are ready to meet the requirements. In the meantime should you have any questions or wish to clarify your position please contact us.