Real Time Information (RTI) is probably the biggest change to hit PAYE since the Pay As You Earn system was first introduced in 1944.
Before you read any further, don’t panic!
If we currently run your payroll for you then we’ll sort everything out; the information below is just so you’re aware of HMRC’s new payroll reporting procedure – RTI (Real Time Information).
If you're a Director of a Ltd Company and don't currently produce payslips - don't worry. We'll sort everything out for you so you don't need to do anything.
Important - If you currently pay people but don’t produce payslips for them because they earn below the lower earnings limit, then you need to get in touch with us as you’ll need to submit this information to HMRC from April 2013.
If you don't operate payroll then this doesn't apply to you but you might find it useful for the future.
So what on earth is RTI?!
Real Time Information (RTI) is the new way of reporting your payroll information to HMRC.
Under the new RTI payroll system employers will send information about the tax and national insurance that they deduct from employees' wages to HMRC at the time when they are deducted - rather than at the end of the tax year in April-May, as happens now (via the P35 and P14).
So instead of submitting this data once a year to HMRC, online submissions will be made weekly, fortnightly, four weekly or monthly, depending on the frequency at which their employees are paid.
We have written a few articles about RTI which you can find on our website:
If you have any questions then please don't hesitate to get in touch - but please don't panic. We'll take care of RTI reporting for you!