HMRC – Real Time Information

From April 2013 HMRC is introducing a new way of reporting PAYE: Real Time Information (RTI).

Using RTI employers will tell HMRC about PAYE payments at the time they are made as part of their payroll process, so information will be submitted throughout the year rather than at year end as it is currently done. Information submitted will include, Hours worked, Gross pay, Tax, NI and Student Loan deductions, Statutory Payments, Other deductions and Net pay.

Employers will be moved across to the new system between April 2013 and October 2013, HMRC will inform employers of when their business will make this move.

Note that RTI only affects the submission of information – PAYE payment arrangements remain unchanged.

Before making the move to RTI we will need to check that the payroll data held is correct and in the right format for RTI purposes.

Either as part of the first RTI transmission or as a separate exercise for larger employers HMRC will go through a process called Employer Alignment. We will submit a file to HMRC for them to verify the data against their records. The most important items will be Name, National Insurance Number and Date of Birth.