October 2013 will see the full implementation of Real Time Information (RTI). Under RTI employers will be required to send payroll payment information to HMRC when the payroll is processed, be that weekly or monthly, rather than at the end of the year.
A number of employers are already involved in the pilot of RTI which ends in March of next year. For those that are not au fait with RTI, HMRC has launched a video guide to help introduce employers to the new system and prepare them within good time. The video explains what RTI means to employers, the main changes that will be introduced, a timetable and other available help and support.
The video can be viewed on YouTube here or a pre-recorded webinar can be viewed here.
Meanwhile, calls for a postponement of RTI after the All-Party Parliamentary Commission raised concerns that both the timetable and costs of the programme had been underestimated, have been rejected by Exchequer Secretary, David Gauke. Mr Gauke has stated that the scheme is running to time and budget.
Plans for a system of centralised deduction of PAYE levies, that was proposed in July 2012 and would have represented an extension of RTI have been abandoned by HMRC. Under centralised deductions the responsibility for the calculation of PAYE tax and NIC would have shifted away from the employer and placed it squarely with the Revenue.
HMRC expects that RTI will lessen the burden on employers by £300 million and will result in a significant decrease in fraud and error.
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