13th March 2013


 Issue No.  2013/04a



Thank you to Brenda Hague of EICG for spotting our “deliberate error” on the recent information update about RTI.  We reported it was to be phased in – it isn’t – it all kicks in from 6th April 2013.  The corrected version is shown below.  Year end returns will of course be due as normal for the current tax year (2012-13).

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 mandatory and applies to all employers with effect from 6th April 2013. 

HMRC 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 should either get appropriate payroll software or if necessary update your existing payroll software.

Main Changes include:

  • How you tell HMRC about starters and leavers - for example, P46 submission will cease but 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 requires further information (such as hours worked). Some of this is mandatory and must be provided.
  • Completing employee information for temporary and casual workers and employees paid below the National Insurance Lower Earnings Limit.

Action requirements:

  • Ensure you or your payroll service provider uses RTI-ready payroll software to send your real time PAYE information.
  • Ensure that any payments made after 6th April comply with the RTI requirements.
  • Ensure your end-of-year return (P14s and P35s) for the year 2012-13 is submitted by the due date as normal.

Further information on the new system can be found on the HMRC web site (www.hmrc.gov.uk) or speak to your Payroll Provider / Accountant.





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