Real Time Information, or RTI, is set to change the way businesses submit your PAYE information to HMRC . The biggest change to payroll since 1944 now means that employers in the UK will have to submit PAYE information every month, rather than just at Payroll year end.
The switchover is effective from April this year for most employers, with all UK businesses needing to changeover to RTI by October 2013.
John Hinckley, an Accounts Project Manager at Xperience Group, commented on the importance of preparing your business before you switch over to RTI, “With RTI compulsory for all UK businesses by the end of 2013, its vital that businesses start thinking about preparing their business, and data, for the move. Certain things like RTI enabled software, researching RTI and preparing your data can all help make the switch as smooth as possible.”
In order for RTI to be fully effective your employee data must be up to date and correct. Items such as date of birth, full name and national insurance must all be correct, in order for employees to receive the benefits they are entitled to. If these aren’t correct, then incorrect deductions could be made, leading to a business being subject to a HMRC compliance check.
Once all your employee data is correct, RTI aims to simplify the employee joining and leaving process, helping to make PAYE submissions much easier in the future, too.