Information for all employers – What is RTI?

The submission to HMRC of online Payroll information will become mandatory for all but exempt employers from October 2013.

Exempt employers: http://www.hmrc.gov.uk/payerti/reporting/paper-filing.htm

Using RTI employers and pension providers will tell HMRC about tax, National Insurance contributions and other deductions when or before payments are made, instead of waiting until after the tax year.

In other words, it will be in real time, as it happens and will support the new Universal Credit system which will also be rolled out across the country in October 2013:

Universal Credit: http://www.dwp.gov.uk/policy/welfare-reform/universal-credit/

Universal Credit will replace:

  • Income-based Jobseeker’s  Allowance
  • Income-related Employment and Support Allowance
  • Income Support
  • Child Tax Credits
  • Working Tax Credits
  • Housing Benefit.

RTI will support Universal Credit by providing the Department of Work and Pensions (DWP) with up to date information and will simultaneously be sending information to HMRC re PAYE when or before payroll payments are made.

Timescale

Employers and pension providers will begin to use the RTI service in the period April 2013 to October 2013. ALL employers will be using the RTI service by October 2013.

Payroll Software

If you are currently using payroll software, you will need to arrange to update it to enable it to send HMRC your payroll information in real time. If you do not currently use payroll software you need to start planning now to introduce it into your business operations.

Ask us to help either by:

✔ Asking us to supply compliant software:
contact enquiries@pierce.co.uk

or

✔ Using our excellent Payroll Bureau facilities:
contact enquiries@pierce.co.uk

More Information