Post on 18-Dec-2015
RTI CIOT & ATT Webinar Real
Time Information - RTI
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Speakers
John Whiting – Chair
Phil Nilson – HMRC
Tina Riches – CIOT Director, Technical
Nicola Pitcher – Saffery Champness
Reminder
Please submit questions throughout the live webinar via the Questions box underneath the video screen.
(questions will be addressed anonymously)
Agenda
• Introduction• RTI – the HMRC view• RTI and the CIOT• Practitioner’s viewpoint • Questions & Discussion – all
Pay As You EarnImproving the operation of Pay As You EarnReal Time Information
Phil Nilson
Improving the operation of PAYE 05/04/2013
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Reporting PAYE information in real time
• To modernise and improve the operation of PAYE so that, over time, PAYE deductions for individuals will become more accurate
• In time, RTI will also help reduce:
- the administrative burdens associated with payroll- the Tax Gap- Tax Credits error and fraud
• To support the operation of Universal Credit for people in work when introduced in 2013 by the Department for Work and Pensions
Improving the operation of PAYE 05/04/2013
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RTI - Timetable
• Unless HMRC has specified a later date, all employers and pension providers were legally required to submit PAYE information in real time from the first payday on or after 6 April 2013…
• …and, in time for the introduction of Universal Credit, practically all employers will be routinely reporting PAYE in real time by October 2013
Improving the operation of PAYE 05/04/2013
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RTI: Where are we now?
• RTI was launched at 06:00 on 6 April
• On 2 May HMRC announced that over 1 million PAYE schemes were reporting in real time – over 50% of mandated employers
• The current figure is in excess of 1.2 million schemes
• Those schemes contain in excess of 20 million individuals – over half of the employee/pensioner population
• There have been no major issues – and feedback is increasingly positive
Improving the operation of PAYE 05/04/2013
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RTI: What next?
• We will continue to monitor progress and, where appropriate, work with stakeholders to resolve any issues emerging
• Between mid-June and early-July, we intend to write to those employers who appear not to have made any real-time PAYE submissions
• We continue to work in collaboration with DWP towards a smooth introduction of Universal Credit from October 2013
Improving the operation of PAYE 05/04/2013
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Help and support
What? Where?
HMRC website
www.hmrc.gov.uk
RTI homepage www.hmrc.gov.uk/rti
Reporting relaxation for smaller employers
www.hmrc.gov.uk/news/relax-small-business.htm
RTI and the CIOT
Tina Riches, Director, Technical CIOT
RTI – the relaxation - 1
• Trigger - burden of on or before reporting• How achieved
– Months of representations to HMRC– 17 bodies led by CIOT – final call to Minister
• Result – For small employers <50 employees– File when run payroll - by 5th of month – Runs to October 2013
RTI – the relaxation - 2
• Purpose – twofold – Time for employers to adjust – no big bang– Time to seek evidence on a need for permanent
relaxation
• Respond to our call for evidence– Common factors of problem cases– Costs of compliance– Case studies
RTI recent developments
• CIOT/ATT engagement letter • New starter procedures - accumulation• Annual schemes – reactivated?• ‘Quasi’ PAYE schemes - paper solution to
digital problem – temporary? • Irregular payments
RT
RTI UC
Don’t forget Universal Credit is coming
www.tax.org.uk/tax-policy/Surveys/RTI_Issues
triches@ciot.org.uk
RTI - and some reminders
Practitioner’s viewpoint
Nicola Pitcher – Saffery Champness
RTI – the experience so far
• Straightforward payrolls typically not problematic
• Main areas of difficulty are:– Casual workers– Directors– Unconventional / unusual practices
Casual workers
• Relaxation welcome • Concerns over loss of staff • Possibility of non-compliance or “self-
employment”• Closure of PAYE scheme needed to remove
RTI reporting obligation where Deductions Working Sheets not required
Directors
• Delays and confusion over registering annual schemes
• Communication and education around what is being drawn – i.e. salary / loan / dividends
• Benefits only schemes – “pseudo schemes”
Other issues
• Unconventional pay patterns• Multiple pay days• NI only payrolls – e.g. actors• Bank charges for BACs software
CIOT & ATT Webinar
RTI
Questions & discussion
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