What is RTI?

Real Time Information (RTI) is a new system being imposed by HM Revenue and Customs (HMRC) on employers from the new tax year in April 2013. It affects the payroll administration of everyone who pays anyone in their employment, no matter how little the amount. This is due to the introduction of Universal credits in Autumn of 2013 which require up to date information about pay. Hence the need for Real Time (PAYE) Information.

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Right now...

.... as an employer, you only need to report your payroll information once a year. This is done by filing your Employers Annual Return. Additionally changes when employees start or leave are reported online via a P45 or a P46.

So what changes?

The RTI rules cause administrative discipline surrounding the gathering of employee information and reporting of payroll data to become much more rigid. At the time of each payroll run the payroll data must be submitted to HMRC 'in real time'. This happens no matter how often the payroll is run! This also means that employees starting or leaving will be reported to HMRC as part of this real time process giving a much more up to date picture and also eliminating the need to submit P45s or P46s.
 

What do you need to do?

To prepare for RTI there are several things that you need to do:

a) Ensure that your payroll information is complete and accurate. As well as the existing payroll data required by HMRC, there are new data requirements. You will need to review and possibly supplement the payroll data that you hold,

b) You must be registered with HMRC as an employer,

c) You, or your payroll provider, will need RTI complaint payroll software.

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And Finally...

Get it wrong and it will cost you!! If you submit the real time information late or do not submit it at all there may be penalties imposed.

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For Additional Information​ or help

... HM Revenue and Customs RTI information can be found here

 

...from PH7 Accountancy, contact us here