Are you an employer? – Real Time Information is on its way
Home > Are you an employer? – Real Time Information is on its way

In April 2013, 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 rather than at the end of the year as per the current process.

Most employers will be legally required to report payroll information in real time from April 2013 with all employers doing so before October 2013.

So what will it actually mean? Well, one of the main goals is to support the Universal Credits system being introduced in October 2013. By having up to date information, the Department for work and pensions (DWP) won’t have to rely on claimants providing information to calculate payments thereby reducing errors and potential for fraud.

For businesses it will mean having to provide information when payments are made thus doing away with the end of year requirements and also simplifying the employee starting and leaving process. RTI will also make PAYE more accurate for employees so reducing the number of bills and repayments made after the tax year end.

HMRC will let employers know when they need to switch to Real Time Information. However, as with all changes, the earlier you plan what you need to do the better – A good starting point would be to check you have all your employees information up to date.

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