Real Time Information (RTI) is a service being introduced by HMRC to improve the operation of PAYE, set to go live from April 2013.
HMRC is confident the introduction of RTI will simplify the Payroll process by removing the need to submit P35 and P14's as well as simplifying the employee new starter and leaver processes.
RTI will involve changes to your current systems and processes, this article will help point you in the right direction.
2. How it will work
Using RTI, employers will inform HMRC about tax, NICs and other deductions as part of the normal payroll routine, instead of sending information once a year at Payroll Year End.
HMRC are confident that the more regular reports about payroll and employee changes mean HMRC will have more accurate data, allowing them to respond more efficiently to errors and reduce the possibility of fraud.
3. Timescales for RTI
Most employers will be legally required to report payroll information in real time from April 2013 with all employers doing so before October 2013.
HMRC plan to move businesses onto the new process from April 2013 onwards, therefore you will be notified of your timescales closer to the time.
4. Preparing for RTI
It is recommended that you familiarise yourself with RTI now and understand how it will impact your business and processes, information which can be provided by your software supplier.
An internet connection is required for RTI. Therefore from a technical perspective if you are not already connected, it would be worth understanding timescales involved with getting set up online.
5. What should I expect from my software provider?
We have completed the required changes in our systems for RTI. By now, you should begin to see plans from your vendor around how they plan to train and implement these changes starting in the new year in preparation for April's launch.
How can we help?
Integrity Software provides specialised accounting software for the construction industry. If your business is considering a change in the future to an accounting system designed just for your industry, please do not hesitate to discuss your requirements with a member of our team.