News

Real Time Information Payroll Reporting Gets Underway

29 - 04 - 2013

More than 70,000 PAYE returns have been submitted to HMRC using real time information (RTI) reporting since the system was introduced earlier this month.

Dubbed ‘the biggest shake-up of PAYE in over 70 years’, employers are now required to submit information about employee pay and deductions to HMRC each time they pay an employee, rather than completing end of year returns.

Sage, one of the computer software companies involved in providing the RTI reporting systems, said many businesses faced difficulties when trying to file their first submissions, as the launch of the new system coincided with bi-annual maintenance work at HMRC.

Managing director of Sage’s small business division, Lee Perkins, said: ‘There was understandable confusion and frustration over the weekend with businesses unable to file due to HMRC site issues.’

A spokesperson at HMRC, however, denied there were glitches, saying ‘This is a bi-annual, routine event and is carried out at this time of the year.’

Here, at Foremans, we have been submitting real time information returns smoothly on a daily basis.

It is hoped that real time information reporting will lead to tax codes being updated more frequently and fewer underpayments and overpayments being made.

The new system is also designed to support the operation of Universal Credit, a new benefit that aims to streamline the current welfare system by replacing five work-based benefits with one.

If you are looking for a payroll service to take the burden of RTI off your hands, contact Foremans LLP on 01244 625 500 for a no-obligation consultation.