HMRC is introducing a new way of reporting PAYE – called Real Time Information, or RTI. RTI will support the operation of Universal Credit – the Government’s flagship welfare programme – which brings together means-tested in and out-of-work benefits, Tax Credits and support for housing, and will improve work incentives and make work pay.
From April 2013, employers are required to send PAYE data electronically to HMRC each time they pay their employees as part of routine payroll processes rather than sending a separate return at the end of the year. Returns will include details of all employees’ pay, tax and deductions.
PAYE itself will not change – just the way, and how often, employers send this data to HMRC.
Letters will be sent by HMRC during October, providing information on what employers need to do to prepare for the new way of reporting PAYE data starting in April 2013.
If you employ anyone, even if it’s only yourself, then your payroll is an essential part of running your business, if you need help or advise on RTI contact us now, April is fast approaching.