Real Time Information is being introduced in 2013, and it’s the biggest change to PAYE since its inception in 1944. Although a highly automated process, it’s important to ensure that your data is correct and your payroll software is RTI compliant.
RTI will have a huge impact on three key areas for your business:
HMRC have identified a number of pieces of information about employees that are critical to RTI. An employer will not be able to make RTI submissions to HMRC without providing the employee’s surname, forename, gender, NI number and date of birth. The address is also mandatory for new starters. There will be an HMRC checker to verify NI numbers.
Under RTI, HMRC will automatically be aware of the tax, NI and student loan liability each month. The employer will have to make an additional monthly submission if there is any adjustment to the payment made to HMRC for things like SMP recovery and compensation.