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Real Time Information

Since 6th April 2013, all employers who operate a payroll will have to notify HMRC electronically every time they make a payment to employees under HMRC new Real Time Information (RTI) system. Currently records only need to be submitted to HMRC at the end of each tax year by way of the form P35 annual return.



Under RTI, employers will now have to provide more detailed information about employees, and for the first time, employees who fall below the lower earnings limit will have to be included on every report even if just one employee earns over £109 per week or £472 per month.

Since April 2013, every time you make a payment to an employee, you will have to make a report to HMRC on or before the day the payment is made. If, like most businesses, you pay your staff monthly, that is 12 submissions to make a year as opposed to just one - or 52 a year if you pay staff weekly.

It is absolutely essential that payroll data is accurate from the commencement of RTI otherwise payroll submissions will fail.  All employers should be reviewing their payroll data now to ensure its accuracy and they also need to check that any software they may already use can be updated to accommodate RTI. If payroll is being run manually, arrangements for electronic filing of RTI reports must be put in place.  Since 6th April 2013 Payroll will not be able to be operated manually using the old style deduction cards under any circumstances; all submissions must be made electronically.

HMRC will eventually be implementing penalties for late or incorrect submissions.

Crossley and Davis operate a fully specialised payroll department which is able to assist all employers with any queries they may have regarding the forthcoming RTI changes. Should you wish to contact a member of our specialised staff to discuss any of the contents mentioned in this article please contact us on either 01253 349331 or This email address is being protected from spambots. You need JavaScript enabled to view it. and Crossley and Davis staff will be happy to advise you further on RTI or any other matters you may wish to discuss.