Let’s Get Social!

HMRC Launch Real Time Information PilotThis new HMRC pilot project is a significant change in the way that PAYE payments are calculated, with the first volunteer employers testing the new Real Time Information (RTI) system.

Under RTI, employers and pension providers will inform HMRC about any PAYE payments, such as tax and NICs, each month as opposed to at the end of each tax year. 10 volunteer employers have now submitted their RTI returns, which HMRC hopes will make the PAYE process easier, more accurate and reduce HMRC administration and costs.

The majority of employers will join RTI from April 2013, with all employers switching to the service by October 2013. By this date, the RTI system will also support the operation of the Government’s flagship Universal Credit welfare programme, which will calculate welfare claims and tax credits automatically based on real time earnings.

Categories: HMRCPAYE & Payroll