.png)
.png)
HMRC have updated their plans for the instigation of a real-time information (RTI) system for PAYE, following receipt of responses to a consultation on the matter.
RTI is being designed to allow employers to furnish the Revenue with information about tax and other deductions from employees as each salary or pension payment is made, or even before, rather than at the end of the tax year.
In reaction to feedback, HMRC have announced they will pilot the service with volunteer software developers and employers for a year, starting in April 2012, to ensure sufficient time to develop a full range of payroll software products and adjust payroll processes.
The trial period will also allow the RTI service to be thoroughly tested before most employers and pension providers begin to use it from April 2013, claimed the Revenue, which is currently working with selected employers to prepare them for the pilot.
The department hopes to bring more employers on to RTI in advance of April 2013. A start date of October 2013 had previously been mooted.
HMRC also announced they will accept RTI submissions through the existing internet channels – the Government Gateway and EDI – regardless of the method used to pay employees.
The EDI channel is a transitional arrangement and will run until at least April 2014. The Bacs channel remains the taxman's strategic choice for employers who pay their employees by Bacs.
The Revenue said it plans to improve information about data quality issues, enhance guidance on good practice, and carry out targeted employer-support visits. According to the department, most problems are caused by:
- missing/wrong date of birth;
- missing/wrong/incomplete first and last names; or
- missing/wrong National Insurance numbers.
