November 2012 HMRC RTI Update - Some employers given extra time

Published on Friday, November 30, 2012

The pilot programme for HMRC Real Time Information (RTI) continues to progress well with the next phase rolling out as planned. This phase will complete before 1st April 2013 when it will be mandatory for all UK businesses to submit PAYE information in real time”.

A very small number of specific organisations will have already been informed by HMRC of a later migration date, which will still happen before October 2013. With only 5 months left until the deadline date, and high volumes of anticipated Bacs implementations required, businesses need to ensure that they avoid any last minute rush or disruptions to their business. Kindly confirm whether your Bacs software is RTI-compliant and if not, make the necessary arrangements well in advance of the April deadline date.

HMRC has recently published information about specific circumstances where employers will be allowed extra time to send real time PAYE information to HMRC. In April, all UK employers will start sending PAYE information in real time, 'on or before' the date the payment is made. The benefits of this mean that:

  • Reporting is integrated with their normal payroll process
  • Separate end-of-year PAYE return forms (P35/P14) are no longer needed
  • Starter and leaver information is reported as part of the routine payroll process rather than separate submissions

In summary, employers will have up to 7 days, or the next routine payday, to report when:

  • Payments are made on the day of the work and vary depending on the work done, and where it is impractical to report in real time. e.g. where a crop picker paid in cash at the end of the day, when their pay is based on how much they have picked; or a casual worker in a pub paid at the end of the night
  • Payments are made to employees for whom employers do not have to maintain a Deductions Working Sheet (P11)

There will also be extra time to report payments of benefits and expenses subject to Class 1 NICs but not taxed under PAYE. These can be reported the next time the regular payroll is run, or 14 days after the end of the tax month the payment was made in - whichever is earlier. Notional payments can already be reported to the same timescale.

Bottomline Technologies HMRC RTI Updates is an ongoing series about the new HMRC RTI initiative that is being implemented in the UK. As and when new information emerges, an update email will be mailed to those registered to receive them and a new blog posted on the Bottomline Technologies website.

If you'd like to be kept updated on developments, then please register to receive the latest posts.

You can also view individual posts from the HMRC RTI Update Series or a consolidated view of all HMRC RTI related articles. More recent update posts are provided below: