Written by Richard Rowell
Published on April 13, 2012

As you probably know the HMRC's is changing the way it collects and processes PAYE / NI information. The latest round of changes comes under the header Real Time Information (RTI) and is now in pilot phase.

Following on from in-year filing in recent years the RTI system will be a real time transfer of earnings and tax information between HMRC and you as employers. Its aims are to reduce HMRC costs, reduce employer costs and to allow the itroduction of the Universal Credit system based on real time earnings.

The switch to RTI is of concern to employers as it is a change in what their obligations are but our customers needn't worry as we will undertake all of this process for you and your payroll operation will be as seamless as usual. In fact the large majorty of the preparation work is already in place.

This means that you do not have to worry about the necessary investment in software, staff training, data cleansing of your employee information, employer alignment with HMRC and launch of the scheme proper.

The pilot phase has started and will last for most of 20012/13. HMRC hope to have 1,300 employers in the pilot phase later in the year but as a payroll outsourcing provier we have decided that we will not enter the pilot scheme for a few reasons. Firstly, under the pilot there is a dual (new and original method) of filing with an element of doubling up of work. Secondly, we would prefer the kinks to be ironed out before we put our clients through the process and finally we would like to switch all of our at the same time so we can offer a consistent service to all of our clients.