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From HMRC:

“In April 2013 HM Revenue & Customs (HMRC) is introducing a new way of reporting PAYE: Real Time Information, or RTI.

‘Real Time Information’ means that employers and pension providers will tell HMRC about PAYE payments at the time they are made as part of their payroll process. Payroll software will collect the necessary information and send it to HMRC Online.

So you will submit information about PAYE payments throughout the year as part of your payroll process, rather than at the end of the year as you do now.

RTI only affects the submission of PAYE information – payment arrangements will remain unchanged.

Most employers will be legally required to report payroll information in real time from April 2013 with all employers doing so before October 2013. HMRC will tell you when your business needs to make this move.”

We use Sage Payroll, which is fully compliant.  If you don’t use software for you payroll, you need to start planning ahead now.

RTI won’t affect most employers who use a payroll agent.  But some employers might currently underpay their current liability and make it up with their next payment or before the end of the tax year, but with RTI, HMRC will know exactly what your liability is and may charge you interest if you pay late.

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5 thoughts on “Real Time Information (RTI)

  1. I’ve just done my Sage Payroll RTI Webinar. You will need a professional, accurate payroll agent, as mistakes are not easily rectified – if you’ve submitted your reports, you will have to make adjustments in the next pay run. You will need to be confident about your employee records being up to date and accurate. Payroll will take much longer. I don’t think HMRC’s PAYE online tool will be able to do RTI, so if you’re using it, you need to think about either buying software and getting staff trained or finding a payroll agent. Are you RTI ready? Will the government gateway be able to cope with all the data?

  2. If you have a weekly payroll, you will need to make weekly submissions to HMRC on or before the date you pay your member of staff. This seems to be a very heavy-handed way of doing things. For some employers, almost impossible. If Universal Credit is relying on this, maybe it is that, that needs changing.

    The fines seem to be determined by HMRC on the number of employees and the number of defaults.

    When a submission is late, the penalty is £100 (per default), but there will be no fines for late submission until April 2014. By this time, all employers will have joined RTI and the main rollout of Universal Credit will have started. Many employers will have been in RTI for a year, and some for longer, by then and so had time to adjust to the new filing obligations before any automatic penalties will apply. From October, HMRC will start to tell employers when a fine would have normally been due.

    If your first pay date in the new tax year is 6th April, you will need to submit your Employer Alignment Submission and your Employer Payment Summary ON THAT DATE, after, of course, doing your Employer’s Annual Return. I just hope the Gateway can cope.
    If you don’t make any payments to employee’s when HMRC are expecting you to, you will still need to make a NIL return to avoid a penalty.

    It’s not too late to call us for a quote!

  3. From Monday morning I was able to make Employer Alignment Submissions and Full Payment Submissions. The Gateway isn’t currently accepting Employer’s Annual Returns for 2012-13 – I hope they’ll have that sorted out ASAP.

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