At the start of the 2013/14 tax year, employers began the transition to reporting Pay As You Earn (PAYE) in real time. Under the previous reporting system for PAYE, amounts paid to employees were reported annually at the end of the tax year to HMRC. The new reporting system of Real Time Information, or RTI as it is often referred to, now requires employers to make an electronic report to HMRC every time they pay an employee.
RTI has impacted every employer in the country, with most smaller employers reporting under RTI since April and larger employers (typically with 5,000+ employees) having made the transition between July and September of this year.
For those who would like a refresh of what RTI is and where to go for advice and support click on the webcast now.
The introduction of RTI has meant that employers have had to rethink their approach to payroll reporting. For some employers, this has meant designing new policies and procedures to capture information which was previously not required, while for others it has meant changing existing payroll systems. Although HMRC announced in July that the roll out of RTI continues to go well, with over 1.5m PAYE schemes enrolled in the system, if your business is experiencing difficulties with the transition to RTI, we would encourage you to speak to us as we can help you overcome the challenges you are facing.
Please click the ‘Our services’ link on the left hand menu for further details of the types of services and assistance we can offer.
HMRC recognises that the introduction of RTI can present challenges to employers and that unusual circumstances continue to cause puzzlement when it comes to RTI reporting. HMRC continue to release information and updates on a periodic basis, the most important of which we have noted under the ‘News’ link on the left hand menu.