Real Time Information Changes to PAYE
In April 2013 HM Revenue & Customs (HMRC) plans to make some major changes to the PAYE system in the form of a move to a "Real Time Information" (RTI) method of reporting.
The RTI system is a change from the annual PAYE reporting method to monthly based reporting instead and will be made at the time of payroll.
However, around a third of small businesses are unaware of the proposed changes according to business accountancy software firm Sage: In a survey of 1,100 small businesses, RTI was unknown to 36% of the small firms questioned.
Additionally only 10% of those businesses polled believed that the change to Real Time Information would be beneficial to them despite the fact that the initiative is supposed to make PAYE admin easier.
Associate Product Manager at Sage, Neilson Watt, said of RTI:
“It is concerning that so many businesses are unaware of the changes. RTI will impact all businesses, regardless of their size, and with its introduction firms will benefit by streamlining processes, relieving the much dreaded nightmare of payroll year-end and relieving the increased administrative burden for payroll at this time of year.”
However, HMRC has produced an informational video entitled Real Time Information – What it Means for Employers which introduces the new RTI procedures.
Jane Brothwood, HMRC’s Head of the Stakeholder & Communications Team at the RTI Programme, said of the new scheme:
“It’s really important that employers are ready and prepared for the introduction of RTI. The video that we have launched should help answer most questions and provide insight for our vision of bringing payroll into the 21st century.”
“So, if you have a spare few minutes, watch the video and see what you can do to help prepare your organisation to help get things ready, for you, your employees and HMRC.”
HMRC also has a webpage dedicated to employers’ questions about RTI at Real Time Information – improving the operation of PAYE.