RTI will see businesses send information to the department every time they pay an employee - instead of the end of each tax year - to ensure everyone is paying the right amount of tax.
But as HMRC has previously stated, data quality can be a problem. Around 80 per cent of errors are made with the employee's National Insurance number, name or date of birth.
Indeed, PAYE employer return details for the 2009-10 tax year saw 40 people listed with an age of more than 200-years-old, while 2,000 returns had a National Insurance number 'AB123456'.
Data accuracy will be exceptionally important when RTI is fully introduced later this year and so businesses must act now to ensure information is correct.
Posted by Thomas Fletcher