From 6th April 2013, employers must start reporting PAYE information to HMRC in real time, on or before the date they pay their employees. This is known as Real Time PAYE or Real Time Information (RTI).
Reporting PAYE in real time is mandatory, so will need to happen as part of your routine payroll process from your first payday on or after 6th April 2013.
We understand that changes to legislation can be daunting, so we’re here to support you every step of the way.
There are three key steps to preparing for Real Time PAYE:
Step 1. Review your payroll procedures.
It’s really important that you know exactly how you will report your payroll information well ahead of the 6th April deadline. Depending on your circumstances, you need to do one of these things:
- If you already use payroll software, you must check with your provider that your existing version will contain RTI reporting functionality. They will be able to advise you on the service they will provide in readiness for Real Time PAYE.
- If you use a payroll provider (such as an accountant or payroll bureau) you must talk to them now to check they will do the PAYE reporting for you, and to find out what you need to do to get RTI-ready.
- If you run your payroll in-house, you will need to use RTI-enabled payroll software like QuickBooks Payroll.
2. Prepare your employee data.
Improving your data quality is essential for a successful transition to Real Time PAYE.
When you start reporting Real Time PAYE, HMRC will match its records to employee details you provide, known as the Payroll Alignment Process, so it’s really important that the data you hold in your payroll records is complete and accurate. Make sure you check and, if necessary, update the data for all your employees and pensioners. Details such as name, date of birth and National Insurance number must be complete and correct
QuickBooks Payroll software includes an RTI Wizard which walks you through this process, quickly identifying where you have missing or inaccurate records, and allowing you to easily export, update and import your edits en-masse.
3. Know where to go for help.
When: Now and ongoing
- Go to intuit.co.uk/rti – we have lots of free Real Time PAYE resources such as guides, videos and webinars. There are loads more on the way too so watch this space!
- Give us a call. If you have a burning question and would rather just speak to someone, please don’t hesitate to call us. Our team will be happy to answer your questions.
- Visit HMRC’s ‘PAYE news and updates’ page – any important news relating to PAYE and payroll is published here.
- Don’t forget your accountant! It’s well worth talking through the implications of RTI with your accountant – they will be able to make recommendations to fit your circumstances and help you to get RTI-ready in good time.