Real Time Information or RTI as it is commonly known is a new PAYE reporting system for submitting payroll and pension data to HMRC, introduced with the view to improve the operation of PAYE.
Real Time Information RTI system requires all payroll data i.e. details of employees (and pensioners) paid through payroll, PAYE, National Insurance and other related payments and deductions is submitted every time an employee is paid rather than annually when a business submits its end-of-year tax return.
Unless HM Revenue & Customs (HMRC) has already notified them otherwise, all employers have to submit all PAYE information to HM Revenue & Customs (HMRC) in real time. Each time you pay an employee you must submit details about employees' pay and deductions to HMRC using payroll software.
Andica Payroll software for tax year 2013-14 includes RTI Real Time Information features for submissions of various returns that will need to be sent to HMRC during the course of the year. The software includes following RTI returns:
It is essential that all payroll data for employer and all employees is accurate, complete and correct before you submit your first RTI submission.
This is a brief summary of routines. As payroll processes vary from one company to another, routines listed do not contain all of the data entry routines that may be required for your specific payroll.
The table below gives an 'at a glance' comparison of the changes. Andica payroll software includes most of these returns and some will get added as and when they become mandatory.
|PAYE reports that were submitted
before 6 April 2013 now being replaced by RTI
|RTI submissions required in real time
from 6 April 2013
|Forms P14 and P35 end-of-year returns will no longer be required once year end returns for 2012-13 have been sent to HMRC.||
Full Payment Summary FPS each time you pay employees
Employer Payment Summary EPS each month for any adjustments to what you owe
Earlier Year Update (EYU) to amend details for earlier years (can be submitted to correct RTI submission for previous year)
Earlier Year Update (FPS) to amend details for earlier years (can be submitted to correct RTI submission for previous year)
|P45 - don't send any parts to HMRC - only use for the employee's own records after 6 April 2013||Include starters and leavers information on your FPS|
|P46, P46(Pen) or P46(Expat) - do not use these forms after 6 April 2013||Include starters and leavers on your FPS. You can use the Starter Checklist to keep your own record|
|Form CA6855 to trace or check a National Insurance number - do not use after 6 April 2013||Use payroll software to send a National Insurance number Verification Request (NVR) to trace or check a National Insurance number|
|Form P38(S) - do not use after 6 April 2013||Include on your payroll and in your FPS|