What is RTI?
Real Time Information, or RTI, is a new system that’s being introduced by HMRC to improve the operation of Pay as You Earn (PAYE). PAYE information will be collected more regularly and more efficiently when employers submit their regular payroll submissions.
RTI is one of the biggest changes to PAYE since it was introduced in 1944, and will ensure PAYE keeps pace with modern working patterns.
Under the HMRC RTI system, employers would be required to send data about PAYE, NIC and student loans every time they pay their employees, rather than with their end-of-year tax return.It’s important to start preparing now for RTI. Although RTI will be a highly-automated process, with reporting to HMRC embedded into an employer or pension provider’s payroll software, you need to think about what RTI means for your organisation, how you run your payroll and your business processes.
How will it affect your business?
Instead of sending information once a year at Payroll Year End, you’ll need to submit information electronically to HMRC for PAYE, NIC and student loans etc. every time you pay your employees.
Furthermore, only one in ten of the 1,100 businesses that SAGE software surveyed recognised the positive impact RTI can have on their organisation, with nearly half (43%) feeling that the changes will increase rather than lessen administrative burden. If you need help with RTI and need to understand the impact that it will have on your business call us on 01925 756970 .
Further information can be found on the HMRC webpage http://www.hmrc.gov.uk/rti/employerfaqs.htm