RTI lifts off
Over 70,000 Pay As You Earn (PAYE) returns have been submitted using Real Time Information (RTI) since April 6.The new PAYE reporting system, known as Real Time Information (RTI), began last week. Employers report PAYE in real time from their first pay day on or after 6 April each time they pay their employees, rather than yearly, under RTI.
Ruth Owen, HMRC’s director general personal tax, said: “RTI is the biggest change to PAYE in 70 years and it is great news that so many employers have started to report PAYE in real time.“But we are under no illusions – we know that it will take time before every employer in the country is using RTI. We appreciate that some employers might be daunted by the change – but they don’t need to be. HMRC is on hand to offer help and support and we are taking a pragmatic approach – which includes no in-year late filing penalties for the first year."
RTI will improve the operation of PAYE for employers, HMRC and employees. It will also reduce administrative burdens for employers.A range of RTI software is available, including free software for micro businesses with nine or fewer employees. Guidance on reporting in real time and hints and tips on avoiding problems when employers start to report PAYE in real time can be found at www.hmrc.gov.uk/rti. Other support includes: