Real time information: Guidance
Most employers are probably aware by now that HMRC is introducing a major change to the PAYE system from April 2013, known as Real Time Information (RTI).
The vast majority of employers are required to start submitting PAYE returns in real time in April 2013 and all employers will be routinely reporting PAYE information in real time by October 2013.
HMRC will be issuing a series of key messages for employers. These messages are aimed at getting employers ready for real time reporting by ensuring that they understand the changes to the reporting of PAYE information that RTI requires and take action in sufficient time.
From April, PAYE returns are required each time a payment is made, electronically as part of routine payroll processes. Employers operating their own payroll will need to consider and take the appropriate action to either update their payroll software or obtain new payroll software or, where an agent or payroll bureaux is used, discuss the changes with their payroll service provider.
Employee data should be reviewed and cleansed and employers need to consider any changes that might be required to internal processes so that they can operate RTI from April next year.
During October, HMRC is writing to all employers telling them about RTI, advising what they should be doing to get their business ready for the changes to PAYE in April 2013 and signposting HMRC guidance.
HMRC has recently issued a release which can be accessed via ‘related documents’ on the left of this page.
Further up-to date information regarding the move to RTI may be found here.