From April 2013, HM Revenue & Customs (HMRC) are introducing a new way of reporting PAYE, known as Real Time Information (RTI). The new system will see fundamental changes to the way in which employers and pension providers must report the payments and deductions they have made under PAYE. This guide aims to provide an overview of the RTI regime, and how the new requirements may affect you.

THE NEW RTI SYSTEM

While essential aspects of the system will remain the same (ie. tax codes, deducting tax and NICs, calculating pay), RTI will require employers and pension providers to submit information to HMRC regarding deductions they have made for PAYE, NICs and student loans when each payment is made, rather than at the end of the year.
The introduction of RTI will:

• ensure individuals pay the right amount of tax following a change of job

• remove the need to submit year end forms P14 and P35, and form P38A for casual employees – although you will still need to provide P45s and P60s to your employees, and complete forms P11D and P11D(b) in respect of taxable benefits and allowances

• remove much of the uncertainty that leads to errors in the child tax credits system.

The information on individuals’ employment income will also be used to support the administration of the new Universal Credit welfare benefit, which is due to come into force in October 2013.

TIMESCALE FOR THE CHANGES

The new system is being phased in from April 2013.  The RTI will be mandatory for all employers from October 2013.  HMRC will notify employers 4 to 6 weeks before the employer must begin using RTI.  You may need to change some of your business systems and procedures to ensure that your information is correct and that your staff will be paid on time. Failure to submit PAYE data on time via RTI could lead to penalties.

LAMEYS AND RTI

HMRC are asking employers to ensure they get the correct information from their employees to ensure RTI operates smoothly. If Lameys operate your payroll scheme then you have nothing to worry about.   We have designed a new employee information form and our payroll software will be able to report the information to HMRC every time we do a payroll run for you. 


As we will be submitting information to HMRC online at the same time as we do a payroll run it is important that we get the correct information from you including gross pay amounts etc.

As a result of RTI all payroll charges will be reviewed and we will be writing to you in due course.  It is Lameys objective to try to keep payroll charges the same where possible.

If Lameys do not currently operate your payroll scheme and you would like more information or a free quotation then please contact Vikky Cottrell on 01626 366117 or This email address is being protected from spambots. You need JavaScript enabled to view it.