HMRC are bringing in new rules when paying PAYE and NIC payments for ALL employers. It is called RTI (Real Time information) and will be introduced for some employers from April 2013. It will become mandatory for most employers by October 2013. HMRC will notify employers 4 – 6 weeks prior to when they must begin RTI submissions.
Under RTI, employers will need to submit electronically to HMRC, details of PAYE and NIC payments at the time they are made instead of at the end of the financial year.
It is aimed that RTI will make the PAYE process less complicated by removing the need to submit end of year P35s and P14s and will simplify the employee new starter and leaver processes.
RTI will support Universal Credits by providing the DWP with up to date information about claimant’s employment income, enabling them to calculate Universal Credits payments without the need for claimants to supply employment or pension income information.
HMRC offers a Basic PAYE Tools software for free download to people who employ 9 or less employees and they have undertaken to enable it to handle RTI.
To find out more about PAYE in real time see the MMRC guidance on getting started with PAYE in real time