Real time information: the key points for business

PAYE has been the system for the deduction of tax/National Insurance since its introduction in 1944.

HMRC are creating significant changes to the way that all payroll-related deductions are reported.

Currently employers submit a year end return once a year.

Under Real Time Information (RTI) employers and pension providers are required to inform HMRC about deductions when payments are made not just at year end.

However reporting for benefits is not being altered at this time but is expected to be in the future.

The main driver to this change is to support the introduction in 2013 of the Universal Credit system to provide the Department for Work and Pensions with the necessary information for the processing of...