Starting April 2013 HM Revenue & Customs (HMRC) is introducing Real Time Information (RTI) to improve the operation of PAYE; the most fundamental change to PAYE since its creation in 1944. ‘Real Time Information’ means employers will tell HMRC about tax, national insurance contributions and other deductions at the time they are made as part of the payroll process, instead of waiting until after the end of the tax year. Payroll software will collect the necessary information and send it to HMRC Online. RTI only affects the submission of PAYE information – payment arrangements will remain unchanged.
HM Revenue & Customs proposed benefits of RTI:
These dates are subject to change by HM Revenue & Customs, but by October 6, 2013 all employers will be required to use RTI.
For more details on how to transition to Real Time Information, visit the HM Revenue & Customs website.