The document discusses the Real Time Information (RTI) Programme which aims to modernize and improve the operation of PAYE so deductions become more accurate over time. Key points include: RTI is on track to require most employers to report PAYE information in real time starting in April 2013; the pilot program involving 320 employers has seen over 3 million records reported with few issues; feedback indicates real time reporting has been easy and quick; and employers are advised to ensure accurate employee data and review processes ahead of the changes.

1. Pay As You Earn
Improving the operation of
Pay As You Earn
Real Time Information
January 2013
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2. The objectives of the RTI Programme
• To modernise and improve the operation of PAYE so
that, over time, PAYE deductions for individuals will
become more accurate
• To support the operation of Universal Credit when
introduced in 2013 by the Department for Work and
Pensions
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3. Key facts
• The RTI Programme is on track and on time
• Unless in the pilot or HMRC has indicated a later date, the vast
majority of employers and pension providers will be legally
required to begin submitting PAYE information in real time in
April 2013…
• …with practically all employers routinely reporting PAYE in real
time by October 2013
• The structure of PAYE remains unchanged…
• …but the way in which employers and pension providers send PAYE
information to HMRC is fundamentally changing
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4. The pilot
• The pilot started as planned on 11 April 2012:
• 320 employers joined between April and June 2012
• by the end of December 2012, more than 3 million
individual records were being reported in real time; and
• by March 2013, we aim to have PAYE information being
reported in real time for around 6 million individuals
• HMRC continues to work with payroll software developers and
volunteer employers to iron out wrinkles in a controlled
environment
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5. Feedback from pilot employers
• RTI is working well - the general consensus to date is that
reporting PAYE in real time is easy
• Support from both HMRC and software developers has been good
• Submission times remain quick: submissions with smaller numbers
individual records have been made in seconds and the largest
submission of three schemes including over one million individual
records was made in less than one hour.
• Bacs hashes continue to flow successfully and have been correctly
matched across the pilot schemes where payment to employees is
made via Bacs.
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6. Feedback from RTI pilot: Data Quality
• Data quality is important to prevent submissions being rejected.
Check your data to ensure you have included all the mandatory
fields for all employees (Name, Date of Birth, Gender, Address) -
and that it is correct. Include the NINO where known
• Check your submission to ensure that you have not included invalid
characters such as ‘ or / in particular fields. Some characters may
be permitted in some fields and not others. Please check to
ensure you are using the most appropriate characters for each
field.
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7. Preparing for real time reporting: key actions
• Ensure employee data is correct and complete
Full name Date of birth
National Insurance number
Gender Address
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8. Tips in recording key employee information
Date of National
Name Insurance
birth
number
• Full forenames, • Always enter
not initials • Always enter
the correct date
the correct NI
of birth
• Forenames and number
surname in the • Enter the day, • Correct format
correct order month and full – 2 letters, 6
year, such as numbers and a
• Make sure they 05/05/1985 final letter –
are spelt A, B, C or D
correctly • Verify from
official
• Don’t put titles documents
in name boxes
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9. Feedback from RTI pilot: Payroll Alignment
• EAS or First FPS – from April, where employers have
daily, weekly, monthly payrolls under one PAYE scheme
reference, the EAS may be submitted in parts. This does not
apply when a First FPS is being submitted
• Don’t forget to include all employees who currently work for you -
and those who have left since 6 April.
• EAS and FPS timing – after submitting the EAS or first
FPS, employers should wait 24 hours before submitting the FPS.
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10. Feedback from RTI pilot: Points to Remember!
• Ensure you have your correct Accounts Office Reference number.
• Ensure the amount reported on your FPS/EPS matches the
amount paid on following 19th/22nd.
• Check you have registered for the Government Gateway and your
credentials are valid prior to submission.
• Ensure that your Bacs software has been updated where you pay
your employees by direct Bacs.
• Only include the cross reference (hash) where you make payment
of PAYE income via Bacs.
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11. Recent announcements
• New guidance relating to the reporting of notional payments,
earnings and notional payments delivered by overseas employers
and employment income paid in respect of employment-related
securities
http://www.hmrc.gov.uk/rti/expats-RTI.pdf
• Ad hoc payments made outside of the regular payroll and
payments which vary according to the work done on the day,
where it is impractical to report on or before.
http://www.hmrc.gov.uk/rti/employerfaqs.htm#14
• New guidance relating to penalties, returns and payments for
2012-13 and 2013-14
http://www.hmrc.gov.uk/news/payerti-payments.htm
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12. Summary of key actions to take to prepare
for real time reporting
• Update/acquire RTI-enabled software or use a payroll service
provider
• Ensure employee data is correct and complete
• Review:
• employee data
• recruitment and payroll processes
• Become familiar with the reporting requirements
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13. Help and support
Real Time Information homepage
www.hmrc.gov.uk/rti/
Preparing for operating PAYE in real time
http://www.hmrc.gov.uk/payerti/getting-started/rti.htm
Guidance on operating PAYE in real time
http://www.hmrc.gov.uk/payerti/index.htm
Information to be reported to HMRC
http://www.hmrc.gov.uk/payerti/reporting/what-to-report.htm
Data Quality homepage
http://www.hmrc.gov.uk/rti/dip/index.htm
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14. Help and support
FAQs for employers
http://www.hmrc.gov.uk/rti/employerfaqs.htm
Basic PAYE Tools
www.hmrc.gov.uk/payerti/getting-started/paye-tools.htm
www.hmrc.gov.uk/bpt2013
Payroll Alignment
http://www.hmrc.gov.uk/payerti/reporting/payroll-alignment.htm
See payroll software that has PAYE Recognition
http://www.hmrc.gov.uk/softwaredevelopers/paye/rti-software-
forms.htm
Register for e-mail alerts
www.businesslink.gov.uk/hmrcemployeremailalerts
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