HMRC this week have sent letters to all businesses explaining how RTI (Real Time Information) will commence in April 2013, how it affects you and how it will benefit HMRC.
Here’s the text of the letter:-
Getting your business ready for PAYE Real Time Information
From April 2013 there will be a new way to report PAYE information in real time: Real Time Information – or RTI.
PAYE itself will not change just the way, and how often, you send PAYE details to HMRC.
Instead of sending all PAYE details in one go, at the end of the year, from April 2013 you (or your accountant, bookkeeper or payroll bureau) will have to:
- send details every time a payment is made, at the time it is made
- use payroll software to send the details electronically as part of your routine payroll process.
You will have to start sending PAYE in real time from April 2013, unless we notify you of a different date.
Why we are introducing PAYE Real Time Information
We are introducing PAYE RTI for two important reasons:
- It will improve the operation of PAYE for employers, HMRC and employees.
- It will also provide accurate records on wages and tax for the forthcoming Universal Credit, so eligible employees will get the right amount of benefits.
What you need to do
Read the enclosed helpsheet. It tells you what you need to do to get ready for RTI.
Don’t put it off – start getting ready now for April 2013.
Please go to hmrc.gov.uk/rti for more details including information about Universal Credit.
So there you have the information and importantly you will need RTI enabled Payroll Software. For smaller businesses (up to 9 employees) HMRC’s Basic PAYE Tools is free and easy to use and will be RTI enabled ready for the April 2013 start date.