In April 2013 HM Revenue & Customs (HMRC) is introducing a new way of reporting PAYE: Real Time Information, or RTI.
Using RTI, employers and additionally pension providers will tell HMRC about PAYE payments as they are made as part of their payroll process. Payroll software will gather the necessary information and submit it to HMRC online.
So you will submit information on PAYE payments throughout the year as part of your payroll process, rather than at the end of the 12 months as you do now (P35 year end returns).
RTI only impacts on the submission of PAYE information – payment arrangements will remain unchanged.
Most employers will be legally required to use RTI from April 2013 with all employers submitting RTI by October 2013. HMRC will tell you when your business is required to make this move over to RTI.
We will guide you through this change-over as and when your business is required to do so. In the meantime, for more information on RTI and the impact it is likely to have on your business please visit the HMRC website on http://www.hmrc.gov.uk/rti/index.htm