Preparing for the introduction of Real Time Information

Previously employers only reported details of payments and deductions to HMRC once a year, via the Employers Annual Return. RTI is the move to a system which collects information on PAYE deductions at the same time an employee is paid. The information will then be reported to HM Revenue and Customs (HMRC) via a Full Payment Submission at each pay run.  HMRC will then be able to check on the payment on PAYE liabilities and take prompt action to collect debts from employers. RTI is due to be introduced on 6/4/13 for all employers.


The main driver for RTI is the introduction of ‘Universal Credits’ in October 2013 which is due to replace the present range of welfare benefits. Receiving information through RTI, a claimant’s Universal Credit can be amended based on changes to earnings rather than the claimant providing details of their income. By receiving these changes Real Time, tax codes can be changed to reflect this.


RTI is aimed at reducing the costs for both employers and HMRC. HMRC suggest there will be a significant advantage to employers due to a reduction in workload as employers will no longer need to complete forms P45 and P46, and the end of year P35 and P14 forms.  As for this we shall wait and see!


For RTI, HMRC will need more accurate and in some cases additional information from employers. The current list from HMRC shows 110 data items required. The list covers: new starter information, details of employee pensions, recovery of statutory payments and information to identify the employer and employee. It is important to note that all information submitted must be clean and ‘match’ that held by HMRC. Errors on full names, dates of birth, NI numbers or gender can cause significant problems.


At Ingalls we have a dedicated team of payroll staff who have experience and expertise in preparing your payroll data for RTI. We also have the relevant software in place to deal with the monthly requirements. Additionally our staff will review the data before submission and will deal with HMRC on your behalf to resolve any issues arising. Our team can efficiently manage the changeover and eliminate any increase in workloads due to the introduction of this new scheme.


For any further information please contact us on 01539 721548