In April 2013 Her Majesty's Revenue and Customs (HMRC) introduced a new payroll reporting system to all employers. This system known as RTI (Real Time Information) will involve the reporting of employees pay related information at the actual time of payment as opposed to the end of the year. The change to RTI is intended to pave the way for the introduction of Universal Credits (UC) in October 2013.

1. http://www.holgatecourtaccountants.co.uk/

2. RTI (Real Time Information) will involve the reporting of
employees pay related information at the actual time of payment
as opposed to the end of the year.
The change to RTI is intended to pave the way for the introduction
of Universal Credits (UC) in October 2013.

3. The objective of RTI is to calculate state benefits under the UC
system more accurately.
Historically this information has been inaccurate and is often late
in being reported, resulting in a combination of over payments
and under payments.

4. Employers who have a split PAYE system or more than 250
employees will be required to complete a mandatory Employer
Alignment Submission (EAS).
Smaller companies will have a choice as to whether they want to
submit an EAS, but may find the extra administration work
required justifies the effort in terms of providing accurate
employee data to HMRC.
The type of data required for the EAS will be name and address of
employees, gender, date of birth and tax code.

5. Employers will need to make the RTI submissions to match payroll
frequency, either on or before the respective pay date. There are
two different types of submissions:
• A Full Payment Submission which provides individual employee
information
and/or
• an Employer Payment Summary

6. Employer Payment Summary requires:
• BACS hash code
• Passport numbers of employee's where known
• Number of employees' student loans
• Payroll ID - where an employer has more than one employment
contract with you

7. How Will RTI Submissions Be Accepted?
There will be a number of options available for employers to use
to submit their respective RTI information;
• the Government Gateway
• or other available electronic methods
NB. Hard copy paper submissions will only be accepted in
extenuating circumstances.

8. How Can You Prepare for RTI
Prior to receiving your HMRC letter it is suggested you review and
update your employee records, checking that you have all the
required information.
The HMRC have recognized that some smaller employers with less
than 50 employees may need more time to adapt to PAYE real
time reporting and provisionally are allowing the information to
be sent to HMRC by the regular payroll date until 5 October 2013.

9. For help and advice with RTI please contact
Holgate Court Accountants in Romford