Real Time Information (RTI)

Crispin Taylor & Lis Moore

SLCC Advisory Service

What is RTI?

• Biggest change to PAYE since 1944

• More frequent collection of tax and national insurance information (NIC)

• Includes details of all employees even those who earn below the tax & NIC thresholds

When is it happening?

• April 2013 –October 2013

• HMRC notification of start date

• Get prepared now

Why is it happening?

• Enable more efficient HMRC response to queries/errors

• Support the introduction of the Universal Credit (Oct 2013 onwards)

• Reduce fraud

• Provide Dept of Work & Pensions with up to date information for calculating benefits

What will be submitted

• Employer Alignment Submission (EAS)

• Full Payment Summary (FPS)

• Employer Payment Summary (EPS)

• National Insurance Verification Request (NVR)

The EAS

• Employer’s PAYE Ref• Accounts Office Ref• Tax Office Number• Employee Name & Address (full name not

nicknames, initials)• Employee Date of Birth• Employee NI Number• Employee Payroll ID• Employment Start Date

The FPS

• Starter & leaver Information (no more P45 or P46)

• Employee Forename & Surname

• Employee NI Number, Tax Code & Gender

• Employee Address

• Employee Payment Information (Net Pay)

• PAYE & NIC Contributions

The EPS

• Lets HMRC know about alterations to liabilities e.g SSP, SMP

• No payment due• NIC Compensation claimed• Advanced funding • CIS deductions• NIC holiday• If pay frequency is less than monthly the EPS

must still be submitted monthly

The NVR

• Used by the employer to validate NI number

• Employees use a different form CA5403

• Employee Name

• Employee Date of Birth

• Employee Address

How do I submit RTI?

• Payroll Software including HMRC Basic Tools

• Payroll Agent/Accountant

• No online submissions or web forms

• Alternative software suppliers listed on HMRC website

• If using HMRC Basic Tools – look out for update notifications/alerts

Not monthly paid?

• Send FPS when staff are paid

• Send EPS within 14 days of the end of tax month i.e. 19th of month following every month – this tells HMRC that no payment is due for the month

Other Issues

• If no clerk and no other employees submit an EPS to advise a “period of inactivity”

• Remember to tell HMRC if someone is a casual worker so they don’t assume that the employee has left

• Employees still get a P45 – HMRC doesn’t

• It won’t be an easy transition for employers or HMRC

Help & Advice

• HMRC website www.hmrc.gov.uk/rti

• HMRC Employer Helpline 0845 7 143 143

• SLCC Briefing Advice Note

• SLCC Advisory Service is not qualified to advise on this and Regional Advisors will refer you back to HMRC