“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.