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The pilot of real-time information (RTI) system for PAYE is well into its third stage, with more schemes joining, according to HMRC. The department currently has records of around 1.5m individuals reported in real time by more than 15,000 schemes.
All employers will have to report PAYE matters in real time from April 2013, except for schemes with more than 5,000 employments; the largest employers and pension providers will have staggered start dates between June and August 2013.
The Revenue's latest RTI update document covers key issues:
Data quality
Improving data quality is important preparation for a successful transition to operating PAYE in real time, HMRC advise. More than 80% of problems are caused by holding an incorrect name, date of birth or National Insurance number.
The Revenue is working with employers, software developers and industry bodies to identify ways to improve the quality of submitted data.
Key information for employers to provide is the individual’s full names, including their full forenames rather than their initials, the correct date of birth, National Insurance numbers, and not to use made-up or default data.
HMRC suggest employers take the following steps in relation to data:
- Emphasise to payroll and HR staff the importance of collecting correct information.
- Review the way identity data are collected from new staff.
- Translate important guidance into the languages of their migrant workers
- Sign up for HMRC employer email alerts.
Liabilities and payments
Employers should be up to date with their payments to HMRC regardless of whether they have been paying late or under-paying each month.
Stage 1 and 2 employers in the pilot with apparent underpayments are being contacted by telephone in the first instance. If the debt is agreed, the Revenue will ask the employer for payment or discuss a time-to-pay arrangement.
Several employers are failing to submit an employer payment summary (EPS), to inform the taxman of adjustments to the amount owedL statutory payments made or construction industry scheme deductions, for example.
Adjustments should be reported on the EPS and sent to HMRC by the 19th of the following month.
Top tips
The department's RTI update includes a number of “top tips” for employers in the pilot. Those about to join are advised to ensure their payroll (and, if used, BACS) software is RTI-compliant and that employee data are correct and accurate.
