Real Time
Information (RTI) moved a step closer today when the pilot was
launched, with the first of 10 volunteer employers submitting
their RTI return.
RTI will make it easier for employers, pension providers and HM
Revenue & Customs (HMRC) to administer PAYE. Under RTI,
employers and pension providers will tell HMRC about PAYE payments
at the time they are made – as opposed to only at the end of the year.
Most employers will join RTI from April 2013 and all employers
will be using the RTI service by October 2013.
David Gauke, Exchequer Secretary, said:
“RTI will ensure that the PAYE system meets the needs of the 21st
century. It will improve the service to taxpayers by making it
easier to ensure that people pay the right tax after a change of job.
“HMRC is committed to a smooth and on-time transition. The start
of the pilot today demonstrates that RTI is on track.
”RTI will remove administrative burdens of £300 million a year
from employers, mainly from the abolition of the end-of-year PAYE
returns process – the biggest single contribution that any tax
change could make.”
Confirming that HMRC is one of the 10 volunteer employers to join
the controlled go live , Stephen Banyard, Acting Director General
for Personal Tax, said:
“We have been working in close partnership with stakeholders to
ensure that RTI will be introduced progressively, to give time for
testing the new systems and processes and allowing them to bed in.
“The pilot will allow us to iron out any wrinkles in a small,
controlled environment so that we can ensure RTI is working
smoothly as more and more employers join the pilot. We are working
closely with employers and the payroll industry but having HMRC
take part in the pilot will allow us to see first-hand how it is
working from an employer’s perspective.
“A specialist team of RTI experts will be on hand to support
employers through the pilot.”
RTI will support the operation of Universal Credit – the
Government’s flagship welfare programme, which brings together
means-tested in and out of work benefits, Tax Credits and support
for housing and will improve work incentives and make work pay.
The Minister for Welfare Reform, Lord Freud, said:
“I welcome the pilot announced today – both Universal Credit and
RTI are on track and on time to support the implementation of
Universal Credit from October 2013.
“Interlinking Real Time information with Universal Credit will
enable us to process claims automatically and more efficiently,
allowing us to make the right payment based on real time earnings.”
More info at http://www.hmrc.gov.uk/rti/index.htm
Two free webinars are also available:
“Real Time Information – an overview” a 15 minute look at the
RTI timetable, main day-to-day changes employers will see, and
what help and support is
availablehttps://www3.gotomeeting.com/register/274066646
“Accurate Employee Information Matters – it can save time and
money” - an 11 minute look at examples and the implications of
inaccurate employee information, plus tips on how to avoid this
and make sure that employee information is recorded accurately.
https://www3.gotomeeting.com/register/261725806
Notes for editors
Timeline:
Around a further 310 volunteer employers and pension providers
will join during May and June.
Subject to the initial pilot being successful, up to around
1,300 volunteer employers will be reporting RTI by September 2012.
By March 2013, subject to the success of the early pilot stage,
around 250,000 employers will be reporting RTI. Most employers
will join RTI from April 2013 with all employers reporting RTI by
October 2013.
An online video to help employers reduce the problems caused by
inaccurate employee data can be viewed on the YouTube website at
http://bit.ly/xVazur
Follow HMRC on Twitter @HMRCgovuk
NAT 34/12
Issued by HM Revenue & Customs Press
Office Press enquiries only please contact:
Contacts:
HM Revenue & Customs
news.reply@hmrc.gsi.gov.uk
Jan Marszewski
Phone: 0207 147 0798
jan.marszewski@hmrc.gsi.gov.uk
HMRC Out of Hours
Phone: 07860 359544
NDS.HMRC@coi.gsi.gov.uk