PAYE Real Time Information RTI - New system

Implementation

  • Announced by HMRC on 4th April 2011.
  • Live testing has been successfully in progress since May 2012.
  • Implementation April 2013.
  • Compulsory from October 2013.
  • HMRC will notify any companies who are to impliment later than April 2013.
  • Possibly in stages.
  • We assume penalties for failing to implement.
  • If we are doing your payroll we will be ready by March 2013.
  • Your software supplier will hopefully be ready when the time comes.
  • HMRC's Basic PAYE Tools will be ready February 2013.

Staff payments and deductions

  • Monthly declaration to HMRC.
  • Monthly Full Payment Submission FPS filed online.
  • P45/P46 "...remove the need ... over time".
  • For now employees:
  • still get paper P45 part 1 and part 1 a when leaving a job.
  • Still give the new employer paper P45 part 1 or
  • if applicable, still complete P46 Employee without a Form P45 when starting with a new employer.

Preparing for Real Time Information RTI

  • All employee records must include:
  • Surname.
  • Forename.
  • Date of Birth.
  • NI number.
  • The temporary NI number beginning "TN" has not been valid since the year 2003 and will not be accepted.

PAYE/NI payments

  • Actual PAYE/NI liability declared to HMRC on a monthly basis.
  • Full Payment Submissions FPS.
  • BACS payments:
  • BACS Accredited Software Supplier or a BACS accredited bureau service:
  • additional four characters entered into field 7 (spare field) for HMRC to identify your payment against the online submission.
  • Bank software:
  • No change.
  • Presumably collection activity will be intensified.
  • We would envisage early recourse to bailiff enforcement.
  • If you have cash flow difficulties you will need to make formal arrangements for time to pay without delay.
  • The existing penalties for late payment will automatically be enforced as part of the collection activity.

Talk to us about PAYE Real Time Information and your payroll generally