Introduced in April 2013 employers have been reporting PAYE information to HM Revenue & Customs (HMRC) in real time. You may see this referred to as Real Time Information – or RTI.
One implication of this is that all manual payroll systems have been transferred to payroll software, making real time PAYE a reality.
Change to this PAYE real time scheme has been gradual, but in year 2014-15 employers must set up payroll records for all employees paid during the tax year. Records must include all employees, no matter how much they’ve been paid, even those earning below £111 per week (NICs Lower Earnings Limit 2014-15) or those paid just once a year. Plus you must include any employee who has left since 6th April, but before you had chance to transfer their payroll records across.
It’s all very onerous and adds a considerable administrative burden on a business what’s more there are large penalties if you fail to comply.
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