HMRC - Real Time Information (RTI)

HMRC have concluded their consultation process on the collection of PAYE deductions from employers in real time. When an employer makes a payroll payment, the employer will have to submit the PAYE information to HMRC along with the payment. All Real Time Information will be processed through the BACS channel and mmployers will be required to submith the RTI with Bacs Approved Software. Rather than collecting information annually as is done at present, HMRC will require employers to submit PAYE information every week or month.

What are HMRC objectives in implementing RTI?

The main objective is to improve accuracy and efficiency. By collecting payroll data in real time it is thought that individuals tax deductions will be more accurate throughout the year. It will also reduce fraud and provide support for the universal tax credit.

What is the interim solution?

The timetable to send RTI data though Bacs has been loosened due to concerns from payroll developers. Employers will now submit RTI data through the HMRC Internet or EDI channel until the strategic solution is implemented. Payroll software developers are to include a four digit random string which will be included in the Standard 18 Bacs file. read more...

When will employers have to implement RTI?

In April 2012 HMRC will start to pilot collection of RTI data. The pilot should be completed by October 2012. Large employers will be required to migrate to the new system first with January 2013 expected for employers with greater than 250 employees. During 2013 all other employers will migrate to the new scheme.

Will all employers have to comply with RTI?

All employers will have to submit RTI data. Employers with fewer than 50 employees will be able to use the Government Gateway in the short term but employers with more than 50 employees will be required to submit RTI data through BACS using BACS Approved Software.

Who will be impacted by the changes to PAYE processes?

  • All employers will be impacted - Every company in the UK with a payroll needs to understand the implications of the HMRC RTI proposals.
  • Payroll software suppliers -
  • Bacs Approved Bureaux - click here

This represents a substantial change to employers payroll processes. As a BACS Approved Solution Supplier, Mosaic Software is extremely well placed to provide help and advice on implementing RTI. We will continue update this page with new information as soon as it becomes available. Please bookmark this page to keep up to date with the latest information.

To read the latest consultation paper published by HMRC click here