Reporting PAYE in real time Real Time Information or RTI

post-img01HM Revenue & Customs (HMRC) recognise that some small employers who  pay employees weekly, or more frequently, but only process their payroll  monthly may need longer to adapt to reporting PAYE information in real time. HMRC have therefore agreed a relaxation of reporting arrangements  for small businesses.
Until 5 October 2013, employers with fewer than 50 employees, who find  it difficult to report every payment to employees at the time of payment, may send information to HMRC by the date of their regular payroll run but no later than the end of the tax month (5th).

This is a temporary relaxation to give some extra time to small businesses  that pay weekly (or more frequently) but who only run their payroll (or use an agent to run their payroll) at the end of the month. This extra time will enable these businesses to adapt their processes or change their       arrangements with their payroll service supplier so that they can comply  with the new legislation.

From April 2013, employers who choose to take advantage of this relaxation  will still need to report their PAYE in real time by the last payday in  the month or the end of the tax month (5th April) at the latest.

This is not a withdrawal of the requirement to report PAYE in real time.  All employers are still required to operate PAYE in real time and we expect most employers to be reporting PAYE in real time from their first payday on or after 6th April.

From 6th October all employers will be required to report PAYE in real  time each time they pay their employees. However HMRC will continue to  work with employer representatives during the summer to assess and understand the impact of RTI on the smallest businesses and consider whether they can make improvements to real time reporting which will address their  concerns without compromising the benefits of RTI or the success of the Department for Work  & Pension’s Universal Credit.

HMRC recommends that employers and agents move to real time reporting  as soon as possible in order to give them time to refine business processes  before automated penalties are implemented.

Employers using commercial payroll software will find that their payroll  software is designed to submit their PAYE information as part of their integrated payroll processes. So these employers should continue to or start to report “on or before” each payment is made to employees as this    will be the easiest and quickest way of operating their payroll.

Software developers have been informed that they do not need to change their products to accommodate this relaxation.

Employers paying via Bacs using their own SUN are still required to include the cross reference (hash) in their PAYE returns and their payment instructions from the first payday on or after 6th April.


Source: HMRC website


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