What is RTI
Real Time Information (RTI) is the biggest change to PAYE since its inception in 1944 and is being introduced to improve the operation of PAYE by providing HMRC with up to date information on employees and it will also help support the introduction of Universal Credits.
RTI will affect all employers who operate a PAYE UK payroll. Although the fundamentals of PAYE are unchanged, i.e. use of codes, employers deducting tax and National Insurance. RTI will change how and when employers report information to HMRC. Employers will be required to 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.
Most employers will be legally required to report payroll information in real time from April 2013 with all employers required to do so by October 2013.
How will RTI affect my payroll
RTI requires employers to tell HMRC about PAYE payments at the time they are made as part of their payroll process by electronically submitting a Full Payment Submission (FPS) every time they pay their employees. The list of information required from HMRC is extensive and includes details of employees addresses, dates of birth, national insurance number, pay, tax and NI….the list goes on in total there are over 100 values which must be submitted per employee. Also included within the required information is a cross-reference value which must be quoted within each payments bacs file, so HMRC will know that the amount that has been declared is the same amount that has been paid.
What do I need to do
Your company must ensure that your payroll software is able to process and submit RTI data, you may need to discuss this with your software provider or payroll company.
You will also need to ensure your employee’s key information is accurate and complete.
Key information that is required for all employees is:
- Full names – both forename(s) and surname
- Date of Birth – in dd/mm/yyyy format
- National insurance number
For more information on Real Time Information please visit http://www.hmrc.gov.uk/rti/employerfaqs.htm
How we can help
As a Payroll Bureau we submit data to HMRC on behalf of our clients and RTI submissions will be part of our payroll service, so not only will we take care of your payroll for you but also ensure that your company fully complies with the new Real Time Information regulations, so you wont need to worry about updating your software. Please contact us for more information on our services.