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Using RTI, employers and pension providers will tell HM Revenue & Customs (HMRC) about tax, National Insurance contributions (NICs) and other deductions when or before the payments are made, instead of waiting until after the end of the tax year.

RTI will:

  • Make the PAYE process simpler and less burdensome for employers and HMRC for example, by removing the need for the end of year return (forms P35 and P14) and simplifying the employee starting and leaving processes
  • Make PAYE more accurate for individuals, over time reducing the number of bills and repayments sent after the end of the tax year
  • Enable HMRC to pursue late payments more effectively
  • Support the payment of Universal Credit
  • Reduce Tax Credits error and fraud

Employers and pension providers will send this information to HMRC online for payments made to all their employees, including those paid below the National Insurance Lower Earnings Limit (LEL).