Posts Tagged ‘Real Time Information’

RTI – Time is running out

Posted on: September 24th, 2012 by Leighton Reed No Comments

HMRC have introduced changes within the PAYE system that will affect all employers within the next year.

RTI is the biggest change in the PAYE system for 70 years.

Employers need to ensure they are prepared to be compliant from April 2013.

RTI is being introduced to simplify the operation of the PAYE system for both HMRC and employers and in addition the information obtained will support the work of the DWP when universal credits are introduced. HMRC expect records and information to be more accurate and make administration more efficient. The system is integrated with the payroll process and this is also expected to improve the issue of in year coding notices for employees. Using RTI employers will be notifying HMRC about tax, NI and other deductions when or before payments are made rather than after the end of the tax year. There will therefore no longer be a need for P35 or P14 forms. Employees starting and leaving  processes are also expected to be easier.

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MPs Recommend Real Time Information Delay

Posted on: August 6th, 2012 by MarkJones No Comments

The All-Party Parliamentary Taxation Group has recommended that the introduction of Real Time Information be delayed until 2015. The new PAYE reporting system is due to come into effect from October 2013, but the MPs believe the later date would allow HMRC to better coordinate the deduction of PAYE and benefit entitlement.

HMRC however appear bullish about sticking to the original launch date, and are pleased with the pilot schemes currently running. There are now some 1.7m individual records from 338 PAYE Schemes involved in the pilot.

“We are also seeing external confidence in the pilot and we’ve responded to that by offering more large employers, payroll bureaux, new employers and software developers the opportunity to join the RTI pilot or to expand existing involvement in advance of the launch date in April 2013,” said HMRC’s Stephen Banyard.

Experts have warned that the MPs plea is likely to be rebuffed and employers should continue to plan for RTI.

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Improving PAYE – is it time for a spring clean?

Posted on: January 10th, 2012 by MarkJones No Comments

A move that will radically change the way that employers and HMRC handle payslips will come into effect from April 2013. From this date all employers must use the new system which will see all payslip deductions transmitted to HRMC when employees are paid, rather than once a year.

Real Time Information (RTI) will enable employers and pension providers to tell HMRC about tax, NICs and other deductions when or before the payments are made.

It is hoped that the changes will drastically simplify the 1940s PAYE model, by removing P45s and other such complicated forms.

Instead of submitting PAYE information annually after the end of the tax year, all employers will have to submit payroll data online every time that payroll is run. The details of employees pay will be passed to the Department for Work & Pensions to allow ‘real time’ monthly adjustments to be made to the amount of Universal Credits (which will replace Tax Credits from October 2013).

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