Real time information for payroll reporting begins

Employers are required to use real time information to report payroll deductions before or when they make them, from 6 April 2013 unless a different date is agreed. 

Under new arrangements for Pay As You Earn (PAYE) reporting, employers (and pension providers) have to report deductions to HM Revenue and Customs (HMRC) at the time of, or prior to, paying staff rather than once a year. Under the new filing process, referred to as "real time information (RTI)", employers no longer need to submit end of year returns (forms P35 and P14) as cumulative information will already have been filed. Nor will it be necessary for employers to report new starters or leavers separately to HMRC. 

HMRC began piloting the new scheme in April 2012 with volunteer employers. From 6 October 2013, all employers will have to submit their payroll information using RTI. However, HMRC can require employers to move to RTI before this date and it is expected that employers with fewer than 5,000 employees will be using RTI from 6 April 2013. It is also anticipated that employers with 5,000 or more employees and that are not already in the pilot scheme, will agree joining dates with HMRC of between June 2013 and September 2013. 

Certain employers and PAYE schemes are outside the scope of RTI or are able to defer joining (for example employers that are exempt from filing online on religious grounds), while in some cases employers have up to seven days to report PAYE information. 

Also

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