What Is Real Time InformationHMRC is introducing a new way of reporting PAYE (Pay As You Earn) – called Real Time Information, or RTI.

From April 2013 employers and pension providers will report their payroll information to HM Revenue & Customs (HMRC) in a new way.

They will send HMRC information about any payments and deductions they make to employees or pension recipients each time they are made, as part of the payroll process. Payroll software will simply collect the information and send it to HMRC online.  This will replace the requirement to complete an annual return of PAYE tax and national insurance contributions. The vast majority of employers will be making PAYE returns in real time from April 2013, and it will be mandatory for all employers to report in real time from October 2013.

Changes

You will no longer be required to submit an end of year return (forms P35 and P14) and the starter and leaver process is simplified. You continue to give your employee a form P45 when they leave but you no longer send forms P45 or P46 to HMRC – instead all starter and leaver information will be submitted as part of the Full Payment Submission (FPS).

Benefits