6 Real Time Information (RTI)


Real Time Information is the biggest change to PAYE taxation since its inception in 1946.


Judith


Hemborough, Outsourcing


HMRC recognised that working patterns have changed and that accurate records were needed for the tie in with the Universal Credit benefit system due to be introduced in October 2013.


The structure of PAYE remains the same but the way of reporting will change. It will affect all employers and HMRC will be writing shortly with details of the preparation needed for implementation.


The introduction of RTI will take place for most employers from April 2013, with all in the scheme by


October 2013. Currently there is a pilot scheme running and employers can volunteer to join RTI early.


The key change is that instead of making an annual return via P35 Employers Annual Return, each time an employee is paid, either before or on the day of payment, a return is made online, this is known as Full Payment Submission (FPS).


All employees are included, and P35(A) and P38(S) forms will cease. Therefore students/ workers/casual/ lower paid (under Lower Earnings Limit) employees will need to be included in the FPS.


Your Old Mill contact will be pleased to talk to any clients who may have initial concerns about this change.


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