Under Real Time Information (RTI), employers will send HMRC information about employees' pay when- or before payments are made. This should mean more employees will pay the right amount of tax and National Insurance in the tax year.
Under RTI, when a new employee starts then forms P45 or P46 will no longer be sent to HM Revenue & Customs (HMRC). However, the details will still need to be collected, but they will automatically be reported to HMRC online in the weekly or monthly Full Payment Submissions (FPS) submitted via your payroll software.
RTI is being introduced in April 2013 and will mark the biggest change to payroll since the 1940s. If you would like any assistance during the transition into RTI reporting or ongoing assistance, please feel free to get in touch with your local TaxAssist Accountant.
By Jo Nockels
Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.