PAYE Real Time Information – six months to go

HM Revenue & Customs (HMRC) is kicking off its Real Time Information (RTI) awareness campaign next month. This includes writing to over 1.4 million employers.

The letters, which will be sent during October, will provide information on what employers need to do to prepare for the new way of reporting PAYE data starting in April 2013.

PAYE itself will not change – just the way, and how often, employers send this data to HMRC.

The letters form part of a wider HMRC campaign, starting immediately, to raise awareness among employers of the changes. The campaign will include targeted flyers and emails, regular live Twitter Q&As, You Tube videos and roadshows across the country. It will target employers of all sizes, Payroll Bureaux, accountants, professional bodies, software providers and other representatives and industry groups HMRC’s Director General, Ruth Owen, said:

“Don’t put it off – April 2013, when Real Time Information becomes a reality, is now less than six months away.

“The letters going out to employers include a useful help sheet, which tells them what to do to get ready for the change. Employers should read that and take action such as speaking to their payroll software provider or payroll service provider and checking their employee data is accurate.

”Employers in the pilot who are already using RTI are telling us how straightforward and easy to use it is once you prepare”.

From April employers will send PAYE data electronically to HMRC each time they pay their employees as part of routine payroll processes rather than sending a separate return at the end of the year. Returns will include details of all employees’ pay, tax and deductions.

PAYE RTI is being introduced to improve the operation of PAYE for employers, HMRC and employees. It will also provide up to date information about wages and tax for the forthcoming Universal Credit, so eligible employees will get the right amount of benefits.

Notes to editors

1. RTI was launched in April 2012. It was expanded from May as scheduled, when the first of a further 310 PAYE schemes started reporting PAYE information in real time. HMRC is on track for a further expansion in November.

2. The pilot includes a wide range of employers based on size, industry type, location and software use to ensure the pilot represents a wide employer base.

3. More information can be found here

4. Two free webinars are also available:

• “Real Time Information – an overview” – a 15 minute look at the RTI timetable, main day-to-day changes employers will see, and help and support available.

• “Accurate Employee Information Matters – it can save time and money” - an 11 minute look at examples and the implications of inaccurate employee information, plus tips on how to avoid this and make sure that employee information is recorded accurately.

5. RTI will support the operation of Universal Credit – the Government’s flagship welfare programme - which brings together means-tested in and out-of-work benefits, Tax Credits and support for housing, and will improve work incentives and make work pay.

6. Follow HMRC on Twitter @HMRCgovuk

7. HMRC’s flickr channel www.flickr.com/hmrcgovuk