Real Time Information

From April 2013 most employers (and from October 2013 all employers) will be required to submit PAYE information to HMRC as the information is processed. The process acronym, RTI, short for “Real Time Information”, is a new way for employers to report their employees’ pay and tax details. According to HMRC it will make it easier for employers, pension providers and HMRC to administer PAYE.

Employers and pension providers will tell HMRC about PAYE payments at the time they are made – rather than at the end of the year.

A pilot started in April 2012 is apparently going well. Over 1,300 employers will join the pilot between now and September 2012.

David Gauke, Exchequer Secretary, is quoted as saying:

“RTI is the single biggest innovation in the administration of the tax system since PAYE was brought in after the Second World War. Its introduction will remove admin burdens from businesses of around £300m each year and will support the operation of Universal Credit. As we have seen today, the RTI pilot is going well and on track for April 2013 when most employers will start reporting PAYE in real time.”

If you need more information on the impact that this new initiative will have on your business please call.

Original post by Latest Taxation News and many thanks to them and their entry and picture of their BMX Bike