HM Revenue & Customs has announced that up to 250,000 employers will join the Real Time Information pilot between now and 31 March 2103.
Real Time Information (RTI) is a new compulsory reporting system which changes when employers must submit information to HM Revenue & Customs.
Currently, employers can report details of tax, National Insurance contributions and other deductions at the end of the relevant tax year. Under the new rules however, employers will be required to report information each time they pay their employees as part of a routine payroll process.
A further issue for employers is the amount of new additional information which has to be reported to HMRC in relation to employees. This includes passport number, hours worked, frequency of payments made, details of irregularly paid employees and amounts of any payments made to an employee which have not been subject to PAYE.
HMRC’s pilot started in April with just 10 employers and now has over 1,800 PAYE schemes successfully submitting PAYE returns in real time.
Employers are required to start using RTI from April 2013, with all employers brought within the system no later than October 2013. We would recommend that systems are implemented as soon as possible to gather the required information.
If you have any queries about RTI, contact PAULETTE THOMAS on 01244 404 420 or by e-mail at email@example.com