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Real Time Information : an update

Real time information: an update

 

The real time information (RTI) system for reporting pay-as-you-earn (PAYE) payments to HMRC began in April this year. From 6 October, all employers must report details of payments to employees on or before the date that each payment is made (except those with fewer than 50 employees, who have been given an extension until April 2014).

This has to be done using payroll software, which means many of the forms employers used before 6 April this year are now defunct. Much about the old system remains, however, including payment dates and the use of end-of-year P60 forms for employees.

Here's a quick summary of the scheme this year:

·         April
RTI is rolled out on 6 April following a year-long pilot involving thousands of volunteer employers.

·         June
HMRC says that 83% of SMEs and 77 per cent of micro employers have already started to use RTI. It also announces that firms employing fewer than 50 staff can continue to report PAYE payments on the date of their regular payroll run until April 2014, as they adjust to RTI.

·         September
HMRC says that 44 million individual PAYE records are now being reported in real time, representing over 90 per cent of all employments. It also says suggestions that the system is introducing tax code errors for employees are unfounded, saying there is "no evidence at all of HMRC IT systems incorrectly calculating the charge and that the majority of discrepancies were due to employer misunderstanding or error as they get used to the new system."

·         October
All employers (except those subject to the small employer extension) should be reporting PAYE in real time from 6 October. David Gauke MP tells the Payroll World Autumn Update Conference that over 1.7 million employers and pension providers, covering more than 46 million individual PAYE records, are reporting payroll information in real time.

If we handle your payroll affairs for you, your PAYE payments are being made to HMRC in accordance with the RTI system and rules.

If you're interested in our payroll services for employers, please contact Christine Sutton by email at christines@knightandcompany.co.uk or by phone on 01628 631 056.