Payroll Changes April 2013
Starting in April 2013, HMRC is introducing a new way of reporting PAYE: Real Time Information, or RTI.
‘Real Time Information’ means that employers and pension providers will tell HMRC about PAYE payments at the time they are made as part of their payroll process.
Payroll software will collect the necessary information and send it to HMRC Online.
Employers will submit information about PAYE payments throughout the year as part of the payroll process, rather than at the end of the year (using electronic P35 and P60′s)
RTI only affects the submission of PAYE information – payment arrangements will remain unchanged.
If the current penalty regime proposals get the go-ahead, HMRC could enforce minimum fines of £100 per week for small companies each time PAYE details are submitted late (or not sent at all).