{"id":692,"date":"2012-11-07T00:54:17","date_gmt":"2012-11-07T00:54:17","guid":{"rendered":"http:\/\/my-brains.co.uk\/jackross\/jack-ross-news\/?p=692"},"modified":"2012-11-07T00:54:17","modified_gmt":"2012-11-07T00:54:17","slug":"real-time-information-rti-are-you-ready","status":"publish","type":"post","link":"http:\/\/my-brains.co.uk\/jackross\/real-time-information-rti-are-you-ready\/","title":{"rendered":"Real Time Information (RTI) \u2013 are you ready?"},"content":{"rendered":"

Real Time Information (RTI) is a new system being introduced in April 2013 by HM Revenue & Customs (HMRC) for the reporting of payroll information, which will effectively require employers and pension providers to provide detailed information to HMRC every time employees are paid rather than through the year end return. Under RTI, the employer will be required to submit information; including details of earnings and the tax and NIC deducted whenever a payment is made to an employee. <\/strong><\/p>\n

With the implementation of RTI becoming mandatory without exception between April 2013 and October 2013, RTI will be the biggest single overhaul to the payroll since PAYE was first introduced in 1944. A pilot of the RTI scheme began in April 2012 allowing HMRC to test the system and resolve any problems prior to the mandatory implementation date.<\/p>\n

RTI will link with the Universal Credit<\/strong><\/p>\n

One of the main reasons that the RTI system is being introduced so promptly is as a result of the pending introduction of the Universal Credit benefit system from October 2013, which is intended to simplify the system for making benefit payments to the unemployed or low earners.\u00a0 Under the new Universal Credit system and using the RTI data submitted monthly to HMRC, it will be possible for the benefit payments to be calculated and adjusted for claimants based on their earnings each month, rather than the current system which often leads to errors and abuse.\u00a0 It is estimated that the new Universal Credit system will reduce fraud and error by \u00a32 billion over five years.\u00a0 Many commentators believe that this move is long overdue, whilst sceptics suggest this will increase the administrative burden placed on employers and further push the UK towards a \u2018Big Brother\u2019 state.<\/p>\n

HMRC increases its monitoring<\/strong><\/p>\n

Not to be fooled, RTI will also make the monitoring of PAYE much easier for HMRC as the information will be up to date and accurate.\u00a0 This will allow HMRC to more promptly identify and pursue those businesses that have unpaid PAYE during the year, avoid recalculations at the end of the tax year and permit HMRC to issue penalties for late payment as soon as the employer becomes liable for one.<\/p>\n

Main changes<\/strong><\/p>\n

Undoubtedly RTI will have an impact on the way information is collated and communicated with HMRC.\u00a0 The main changes and challenges are:<\/p>\n