12th March 2013


 Issue No.  2013/04



Real Time Information (RTI) - Are You Ready?

Real Time Information (RTI) is the requirement for all employers to submit PAYE information every time employees are paid (e.g. weekly/monthly) instead of once a year at payroll year end.  It is being phased-in between April and October 2013 and HMRC will advise employers of their RTI commencement date.  Penalties will be imposed for those who do not comply.

HRMC believe the changes will make the tax system more accurate for employees and reduce the number of under/overpayments as the information held on record will be current and provide the ability to view exactly what is due and provide the ability to pursue late payments more effectively.

Consequently, HMRC must be advised of tax, national insurance and other deductions for all employees, on or before each pay remittance date rather than at the end of each tax year. Currently, HMRC are only advised of the total company PAYE payment each month or quarter. They will now require an itemised list by employee of each individual payment made every payroll run.

The required information will need to be submitted electronically directly to HMRC and if you prepare your own payroll - you must submit the required information using ‘File By Internet’ (FBI) and UK BACS if you use this.

Main Changes include:

  • New starters – P46 submission will cease. However, HMRC still expect employers to ask some of the questions on the existing form.
  • Year end – There is no longer a requirement to complete an employer’s annual return (form P35) although there is still a declaration to complete with the final submission file of the tax year. Forms P60 end of year statements of pay will continue as will forms P11D.
  • Information requirements – In addition to the standard information required for an employee (name, address, birth date, NI number etc.), HMRC require further information to assist in liaising with other government departments such as the DWP. Some of this is mandatory and must be provided.

Action requirements:

  • You will be given 6 week’s notice by HMRC of your RTI implementation date. During this notice period, you must submit an electronic file in order to test if the records held on your payroll system align with their records. You must be ready to use RTI by your allocated ‘go live’ date.
  • HMRC will advise of any discrepancies in the records.
  • If any personal details have changed such as an employee name or address, it is the employee’s responsibility as to advise HMRC, as has always been the case.

Further information on the new system can be found on the HMRC web site or speak to your Payroll Provider / Accountant.




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