Real Time Information, employers and pension providers
In April 2013 HM Revenue & Customs (HMRC) is introducing a new way of reporting PAYE: Real Time Information, or RTI.
‘Real Time Information’ means that employers and pension providers will tell HMRC about PAYE payments at the time they are made as part of their payroll process. Payroll software will collect the necessary information and send it to HMRC Online.
So you will submit information about PAYE payments throughout the year as part of your payroll process, rather than at the end of the year as you do now.
RTI only affects the submission of PAYE information – payment arrangements will remain unchanged.
Most employers will be legally required to report payroll information in real time from April 2013 with all employers doing so before October 2013. HMRC will tell you when your business needs to make this move.
What RTI will also involve
Correct payroll data
RTI submissions will use the PAYE information you already send to HMRC, but you will need to check that your payroll data is correct and in the right format for RTI purposes.
- use payroll software, it will need updating so that it can process and submit RTI data – you may need to discuss this with your software provider
- do not currently use payroll software, you will need to plan ahead now so that your business will be able to submit data RTI to HMRC electronically when required to do so
Some commercial payroll software providers provide free products for employers. If you have nine or fewer employees, you can also use HMRC’s free Basic PAYE Tools. There will be a new version available to download once you are invited to operate PAYE in real time.
How we can help
At Cross & Bowen, we currently operate a payroll bureau for a number of clients and the transition to RTI will be handled as part of our service.
If we do not currently process your payroll and you feel you would like assistance with the implementation of RTI, please call us and we can discuss your requirements.