HM Revenue & Customs are introducing a new way of reporting PAYE called Real Time Information (RTI), which for the majority of businesses will be mandatory from April 2013.
The fundamentals of PAYE are unchanged with only the reporting differing under the new RTI system. This is to help improve the operation of PAYE and support the introduction of Universal Credits.
Under RTI, instead of sending PAYE data at the end of the tax year, you will need to send your payroll data every time you pay an employee, therefore hopefully reducing the end-of-year process.
It is important that your business and payroll software are ready to cope with these changes and here are some things you can do now to help you prepare:
- Check you have RTI enabled software installed
- Check your payroll data is correct and accurate to match to HMRC records when submitted
- Become familiar with the new reporting requirements
- Keep up-to-date with the latest RTI developments
If you have any queries regarding RTI or would like a payroll quote, please contact Kelly Cummings in our Ledbury office on 01531 631500 or firstname.lastname@example.org.