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What is Real Time Information (RTI)?

  • Posted 23rd April 2015

What is Real Time Information (RTI)?

Real Time Information (RTI) is a programme introduced by HM Revenue & Customs to improve the accuracy of PAYE and thus reducing the possibility of fraud. This was brought into effect from 2013. Under this new RTI, the employers need to submit the information electronically to HMRC ‘on or before’ paying their employees. When RTI was not introduced, the employers were required to submit just once a year. This means all the employers need to make more regular submissions than before. RTI became compulsory for business in the UK employing up to 5000 employees from April 2013. However, from October 2013, all the employers were required to report each time while paying their employees. To avoid the risk of a penalty, all the businesses should now make sure for reporting RTI accurately. Regardless of this new rule, the process of PAYE should be done in the same way. Being an employer, the only difference is payroll information should be to HMRC on or before the day paying your employees by using a Full Payment Submission (FPS). HMRC will penalise you if you do not submit the Full Payment Submission on time. So, remember and do it on time before it is late. If you do not have to pay your employees in a particular tax month, there will be no FPS. That is why you must inform HMRC immediately by sending Employer Payment Summary (EPS) by the 19th of that particular tax month as HMRC will be expecting an FPS from you. In case if you fail to inform HMRC, you can get ready for a penalty. If you are using payroll software, you must ask your software service provider on how they will make your business become RTI compliant. RTI, an improved and efficient version of reporting, has been considered as the biggest-ever change to PAYE today. I hope this blog becomes useful to all of you who were wanting to know about RTI. If you want to know about this subject, Phoenix Tax Accountants can assist you.

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