HMRC is introducing a new way or reporting PAYE: Real Time Information (RTI).
Under RTI, information about PAYE payments will be submitted throughout the year as part of the payroll process, rather than at the end of the year as they are now. Every time you process your payroll, your software will collect the necessary information and send it to HMRC online.
Regular reporting under the RTI will reduce your end-of-year pressures and be more efficient, saving your organisation time and money.
Most employers will be legally required to use RTI from April 2013, and all employers will be required to by October 2013. HMRC will tell you when your business will needs to make this move.
The main changes under RTI
- Employers will tell HMRC of deductions when the payroll run is done
- P14/P35 End of year forms will disappear
- P45/P46 process will be discontinued or changed
Things that will remain the same
- PAYE calculations and deductions
- Payment dates
What you should consider now
- Review processes used to collect and record employee information
- Check details for your current employees and update where necessary
- Check the RTI homepage on the HMRC website regular for updates
The information provided above is from www.hmrc.gov.uk