8) What is Real Time Updates and how does it affect my business?

Real Time Information, or RTI, is a new system that HMRC is introducing to improve the operation of PAYE.

PAYE information will be collected more regularly and more efficiently as employers submit their regular payroll submissions, rather than with their end-of-year tax return.

RTI will be introduced to most employers in April 2013, and by October 2013 all employers will be enrolled into RTI.

  • Why is HMRC introducing RTI? HMRC is introducing RTI for a number of important reasons.
  • To simplify the PAYE process, making it less burdensome for both HMRC and employers.
  • To enable a more efficient response to PAYE errors such as under or over payments.
  • To simplify the employee starting and leaving process.
  • To support the introduction of Universal Credits, which will streamline benefits into one payment.
  • To reduce fraud and ensure people receive the benefits they’re entitled to.
  • To provide the Department for Work and Pensions with up-to-date information about each claimant’s employment income more efficiently.
  • Changes to Payroll Year End RTI will change the way Payroll Year End works. Although you will still be required to provide your employees with P60s and complete P11D and P11D(a) forms for taxable benefits and expenses, there will be some tasks you no longer need to complete, these include P14 and P35 submissions and P38A returns for casual employees.

Call us now to see how this could affect your business or refer to our PAYE services page.

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