What’s included here?


UPDATE 13/5/13 (Filing your Employer Payment Summary): If an employer has CIS tax suffered on income or is recovering any element of statutory payments (such as SMP) then they must file an EPS for each month which is affected. The EPS for month 1 must be filed by 19 May.


UPDATE 10/4/13 (Filing 2011/2012 joiner or leaver forms): Since we are now in 2013/2014 and the new RTI process are in place, HMRC’s systems are no longer able to accept old style filing. If you had recent joiners or leavers you may not yet have filed their forms P45 or P46 - and if you now try to file you’ll get a failure message but don’t panic - that’s correct. You’ll still have your copy to keep on file and we understand that HMRC will get that joiner or leaver information through a combination of your end of year P35 filing and your ongoing RTI FPS submissions (it makes sense to imagine that leaver information will be picked up from the P35 and that joiner information will be picked up from your first RTI FPS).


UPDATE 20/3/13 (Budget confirms the RTI penalty regime): In his budget speech today, the Chancellor revealed details of the new penalty regime which comes into effect from 6 April 2014. The key features include:
• penalties will apply to each PAYE scheme
• penalties will be based on employee numbers
• employers will be allowed one un-penalised default each year
• penalties will be charged quarterly
• regulations will be used to set the penalty rates


UPDATE 19/3/13 (Temporary relaxation): HMRC has announced a relaxation of the reporting arrangements for small businesses (those with less than 50 employees) until 5 October 2013 to allow further time for those struggling to get their procedures properly in place. Although applicable to all such businesses, the measure is aimed primarily at those with frequent or irregular employee payments who might find it hard to report payments at the time they take place. It is understood that all will be well providing the reporting is done no later than by the end of the tax month. Bearing in mind that there will be no actual late reporting penalties during the first year of RTI, one assumes the relaxation means that HMRC will simply ‘not get cross’ during the first 6 months, will then ‘get cross but still not penalise’ for the second 6 months and ultimately will both ‘get cross and penalise’ from the start of the second year. We again remind employers that any talk of “no penalties” refers only to the reporting under RTI and that other employer obligations remain enforceable and, where applicable, subject to penalties - see our 12/3/13 comment. Employers will be ill-advised to regard 5 October as the effective start date and should be taking all possible steps from the outset to comply with the RTI reporting requirements so they can iron out any issues and be routinely compliant before the threat of actual penalties kicks in.

UPDATE 12/3/13 (Penalties): It has been widely known for some time that there will be a softly softly approach on penalties with “none being charged in the first year of RTI”. Take care, all is not what it may seem - this does not mean a total lack of penalties in relation to the PAYE system. It has been clarified now that the lack of penalties refers specifically to the RTI process and since RTI is purely about the regular in-year filing of information with HMRC this simply means there will be no late filing penalties. It does not mean there will be no penalties at all so: (1) inaccuracy penalties will continue to operate in the same way as they do for other taxes for careless or deliberate errors etc and (2) the current scales of late payment penalties, which increase with the number of times payment is late, will continue to apply.

Note that a less harsh penalty regime for late payment will begin from April 2014. Under those new rules, the first late payment will not incur a penalty, the next 3 will incur a 1% charge, the next 3 will incur a 2% charge, the next 3 will incur a 3% charge and the next 2 will incur a 4% charge. Contrast that with the current penalty regime under which the 11th and 12th late payments incur the same 4% charge as under the new system but they also cause the 4% rate to be charged on all previous late payments.

UPDATE 1/3/13 (Start dates): Most employers will by now have received a letter from HMRC confirming that their RTI start date will be 6th April 2013 as expected. If we run your payroll then you can rest assured we have this covered on your behalf but if you operate your own payroll then you shold already be getting prepared. Our more detailed guidance here explains what you need to be doing.

UPDATE 18/2/13 (Basic tools): If you’re using HMRC’s Basic Tools for your payroll then you’ll need to change to their RTI version for the new tax year. Here is the guidance they have published about closing the 2012/2013 tax year and making the switch to their RTI version.

UPDATE 1/2/13 (Preparation): With RTI now only some 10 weeks away for most employers, now is perhaps a good time to sit up and take note if you have not already prepared yourself for the new processes required.  Even for those who had taken an interest previously, now is a good time to remind themselves of the changes. Some useful information was included in HMRC’s Employer Bulletin 42 last year providing clear and simple guidance on the key aspects RTI.

UPDATE 4/12/12 (Penalties): It has been announced that during the first year of RTI (2013/2014) there will be no penalties for late submission of employer FPS (that’s the ordinary submission which must be made each time wages are paid). The penalty regime in that first year will be rather similar to the existing system ie it will be geared only towards the end of year position - providing the final FPS for the year is made by 19 April 2014, no penalties will be charged (and in fact by using the Earlier Year Update  facility this deadline can be extended to 19 May 2014). Failure will, just as it has already done for some years, incur a penalty of £100 per month (or part month) per 50 employees. It is expected that a system of automatic penalties will be in place from April 2014  - a 57 page consultation document has been issued for comment and the penalty position will be announced in due course.

Note also that there has for some while been, and will continue to be, the possibility of penalties where an employer fails to take reasonable care in dealing with their tax obligations so those who blatantly fail to meet their RTI obligations may still be penalised under these provisions.

Note that penalties for late payment of PAYE will continue to apply on the current basis.

It is not HMRC’s intention to collect penalties but, rather, to encourage compliance so the lack of automatic penalties for late FPS is to be welcomed and provides the opportunity for employers to get used to RTI without the immediate fear of financial penalty. Had automatic penalties been imposed from the outset it would undoubtedly have lead to a considerable number of FPS being made with errors (in blind panic to avoid being penalised) thus leading to a proliferation of correcting submissions and a whole load of confused and messed up information at the tax office.

UPDATE 29/11/12 (Relaxation in limited circumstances): HMRC has been working closely with employers and representatives who have shown that in a limited number of cases reporting information in real time (which means reporting payments to HMRC on or before the time of payment) would be difficult or impossible. As a result, there will be up to seven days to report payments in certain cases although this relaxation addresses only specific circumstances and is not of generally wide application. The relaxation, apart from dealing with some odd situations which most small employers will never face, focuses for practical purposes on those paid in cash or by cheque at the end of the day based on the hours worked such as crop pickers or catering staff. HMRC has published a table of the circumstances in which the additional time will be allowed. For the majority of employers the rule that payments must be reported on or before the time of payment stands and despite all the debate it is unlikely that we will see any general relaxation of the reporting requirement.

UPDATE 12/11/12 (Difficulties foreseen): The Institute of Chartered Accountants in England and Wales (ICAEW) tax faculty is quoted as saying they are “particularly concerned about the impact of [real time reporting] on smaller businesses” and that “the proposed rules do not take account of the real world”. The concern relates specifically to the requirement in the current proposals that the employer must report all of the payroll run data to HMRC before (or at the same time as) paying an employee and it has been suggested that perhaps monthly reporting would be a more workable solution. If there is a rule then it follows that there would be penalties for failure so the end result in practice (and again referring the the mass of smaller employers) is that there would surely be a enormous number of penalties and that is unlikely to be favoured by anyone including HMRC (the aim is to achieve compliance and not simply to collect penalties).   

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Guidance and Commentary

A major change to the way PAYE operates is coming into force April 2013. The new system is known as Real Time Information (RTI). It is a huge change and affects ALL employers (actually there are a few exceptions but these are not the norm - basically if you have people on PAYE then RTI applies to you).

A brief word about what had originally been proposed - Centralised Deductions (CD) and was to have involved something along the lines of the employer paying the whole gross over to HMRC who would pay the employees after calculating and keeping the tax and NI there and then. Hang on - HMRC entrusted with your money? Employees relying on HMRC to get paid? Oh well, CD is a dead duck so let’s say no more.

On the other hand RTI, the system which is happening, does not put everything in the hands of HMRC and it is still the employer who does the payroll just like now. The difference is that the employer has to tell HMRC all the wages details before or at the time of payment.

Bearing in mind that currently HMRC hasn’t got a clue what people are earning until they see the P60 info at the end of the year or P45 info where people change jobs, the new system should allow HMRC to react appropriately to get PAYE codes right where people have two jobs or other changing circumstances as they will have the info payday by payday. Up to date earnings information will be available for benefit and other similar purposes.

Make no mistake - this is huge.


WHEN DOES IT START?
HMRC will give 4-6 weeks notice to employers telling them to begin RTI (which is mandatory not optional). The first employers will begin RTI on 6th April 2013 and all employers will have joined by October 2013. HMRC says that “most” employers will join in April but have not yet said how employers will be selected for notification.


WHAT IS IT?
There is no change to the method of calculating pay (ie employers continue to run the payroll just as they do at the moment). The only change is in the way the information is reported to HMRC. RTI is all about filing live data with HMRC. It is all about timing so you may need to review your payroll procedures, especially for joiners and leavers, to ensure you have all the right information when it is needed.

If you use software to run your payroll you will need to check that it will be RTI enabled. If you do your payroll manually then you will need to find software to do it in future. Manual payroll (and simply completing things like forms P45 using the online facility on HMRC’s website) will no longer be an option. As an alternative to using commercial software, employers can use HMRC’s “Basic Tools (RTI version)” but this can cater for a maximum of only 9 employees.

It was previously possible to use Basic Tools with more than 9 employees and the only restriction was that there could be no more than 9 current employees at the end of the year to allow the P35 to be filed using Basic Tools. Contrast that with RTI under which the Basic Tools will accept only 9 employees through the whole year.  


REAL TIME IN A NUTSHELL

In a nutshell you will:

> Continue to get a P45/P46 from joiners.
> Continue to do a P45 for leavers.
> Continue to do a P60 for employees at the end of the year.
> Start filing your payroll figures (earnings, tax NI etc) with HMRC every time you pay your employees (this is called a Full Payment Submission (FPS) and must be submitted before or at the same time as you pay your employees).
> Stop filing joiner and leaver forms P45/P46 with HMRC (all the info is in your FPS).
> Stop filing a P35 at the end of the year (HMRC has all the info from your FPSs through the year).

You will need to be aware that HMRC will now know the exact amount of PAYE/NI you should be paying each month.

HMRC has not yet published guidance on what will happen if you fail to submit an FPS until after the employees have been paid but no doubt there will be a scale of penalties for late submission. Note that the existing penalties for late payment of your PAYE/NI will continue to apply.


WHAT INFORMATION IS SENT TO HMRC?

There are four types of submission to HMRC:

Employers Alignment Submission (EAS)
This is a one-off submission at the outset to make sure that your payroll information matches the data HMRC hold. This will includes things like employee names, addresses, NI numbers dates of birth, start dates etc.

Full payment submission (FPS)
This is the main submission done with each payroll run and provides HMRC with details of starters and leavers together with each employee’s earnings and deductions and of course the amount you owe to HMRC (which will continue to be paid either monthly or quarterly just as it is now). Let’s be clear, if you do a weekly payroll you will make 52 FPSs during the year.

Employers Payment Summary (EPS)
This is submitted only where there is a need to tell HMRC if the amount of PAYE/NI you are due to pay is not the same as the total of the FPS figures eg if the payment is reduced because of CIS tax. An EPS is also used to advise HMRC of a nil payment.

National Insurance Verification Request (NVR)
Since an NI number is unique to each employee and is central to maintaining their tax records, an NRV submission allows employers to validate an employees NI number or to request one where a new employee does not have one.


Preparing for RTI

As the start of RTI draws closer, employers should prepare themselves. Here are the keys steps to be taken:


Here’s easy access to some of the information produced by HMRC:

1. A  Business Readiness Checklist (opens in new window)

2. A step by step guidance on operating PAYE in real time (opens in new window)

2. A set of FAQs (reproduced below)


What RTI will do and why the system needs to change

Q: What will RTI do?
A: Using RTI, employers will tell HM Revenue & Customs (HMRC) about tax, National Insurance contributions (NICs) and other deductions when or before the payments are made, instead of waiting until after the end of the tax year.

RTI will:

Employers and pension providers will send this information to HMRC online for payments made to all their employees including those paid below the National Insurance Lower Earnings Limit (LEL).


Q: How does RTI support the payment of Universal Credits?
A: RTI will support Universal Credits by providing the Department for Work and Pensions (DWP) with up to date information about claimants' employment income, enabling them to calculate Universal Credits payments without the need for claimants to supply employment or pension income information.


Q: Why change the PAYE system?
A: RTI will enable HMRC to improve the way that the PAYE system operates and builds on the work already done with the introduction of the National Insurance and PAYE Service (NPS).

Under the current PAYE system employers tell HMRC what deductions they have made from employees pay after the end of the tax year. Only then are HMRC able to review whether the correct deductions have been made under PAYE.

With RTI, HMRC will be receiving information when, or before payments are made and will be better able to ensure the correct deductions are made from pay. This will mean more employees will pay the right amount of tax and National Insurance in the tax year.


Q: How will RTI be less of a burden?
A: RTI reporting will become an integral part of an employer's normal payroll activity. When employers run their payroll the payroll software will gather the information required and send it to HMRC. This will be done using the internet through the Government Gateway or by using Electronic Data Interchange (EDI) on or before the date payment is made.

There will be transitional costs of introducing RTI but analysis indicates the system will be cheaper for employers and HMRC to operate once it is bedded in.

For HMRC it will mean that there are fewer individual customer records needing an end-of-year recalculation to determine what underpayments or overpayments have arisen.


Q: What does RTI mean for HMRC?
A: For HMRC it will mean that there are fewer individual customer records needing an end-of-year recalculation to determine what underpayments or overpayments have arisen. Once RTI has bedded in it is likely that HMRC will be able to do more in-year PAYE work.


Q: Does RTI apply to the self-employed?
A: No - it is for the operation of PAYE only


What changes will be made to the operation of PAYE using RTI?

Q. Will I be able to send PAYE pay and tax details in real time using PAYE Online (the 'Portal')?
A. No. Instead, you will need to use either payroll software or, if you have nine or fewer employees, HMRC's Basic PAYE Tools, to send this information in electronic reports called Full Payment Submissions (FPS) directly to HMRC.


How will RTI operate?

Q: Will forms P35, P14 and P38A be needed using RTI?
A: No - end of year returns (forms P35 and P14) or P38A supplementary return will not be needed as employers will tell HMRC about all payments made during the tax year each time their payroll is run.


Q: Why does an FPS include the hours worked?
A: The hours worked is required for the purposes of calculating Tax Credit payments.


Q: How soon after the Employer Alignment Submission (EAS) will the employer be permitted to send in their first RTI submission?
A: Once the EAS has been successfully submitted the employer is considered to have joined RTI and they can start sending FPSs immediately. We recommend that employers wait 30 minutes in between submitting the EAS and the first FPS so that the FPS does not 'overtake' the EAS during processing.


Q: How will HMRC treat statutory payments shown on an Employer Payment Submission (EPS)?
A: If you have claimed an advance of statutory payments then the amount you report on an EPS will be set off against the PAYE due as reported on an FPS. If a credit remains this will be set-off against any advance you have claimed, and any remaining credit will be used against any other amount due, or if nothing is due you can contact HMRC and claim a repayment or reallocation.


Q: I pay my employees monthly, which is when they receive their payslips. However, I also make 'interim' payments mid-month, when I pay my employees a proportion of the net pay they would otherwise receive at the end of the month. Do I need to send an FPS for these interim payments?
A: Under the regulations, whenever a payment of PAYE employment income is made, PAYE should be operated.

You can find guidance on whether a payment should be treated as salary on account, and therefore subject to PAYE, or a loan or advance which is generally not subject to PAYE, in HMRC's Employment Income Manual (EIM42280). When submitting payroll information in real time, you should send an FPS at the same time as you operate PAYE. We appreciate that the timing of the requirement to send a FPS may cause issues where occasional ad hoc payments are made to individual employees and the payroll would not normally be run at that time. We will look at this issue as part of our review of the requirement to send the FPS 'on or before' the time of payment. In the meantime, where it is impractical to send an FPS when an occasional ad hoc payment is made, we are content for pilot employers to follow their existing processes and report such payments in their next regular payroll run/FPS. Where making a payment on account to a particular employee is a regular arrangement, as opposed to occasional and ad hoc, we expect employers to amend their processes to ensure these are reported on or before the time of payment.


Q: Will I have to make a RTI submission even if I haven't paid anyone?
A: If you are registered with HMRC as an employer who pays HMRC quarterly, we will know to expect quarterly payments from you without you needing to do anything further.

All employers need to send an FPS every time they pay their employees, whether they pay HMRC monthly or quarterly. If you haven’t made any payments to any employees in a tax month, you should send HMRC an EPS showing 'No payment due as no employees or subcontractors paid in this pay period' within 14 days following the end of the tax month. This also applies to employers who pay HMRC on a quarterly basis - if you do not, then HMRC will specify an amount due for that month, and pursue this at the end of the relevant quarter.


Q: I have about 15 newspaper boys/girls who are all under 16 and are paid between £10-£15 a week. Must I include them in the payroll for RTI and include them in an FPS etc?

A: No. Employees under 16 do not need to be included in an FPS etc, unless their earnings exceed the income tax personal allowance. When an employee reaches 16, read our guide 'Employee reaches 16'. However if you already include employees under 16 on your payroll and you would find it easier to include them in the FPS with the rest of your employees then you may do so.


Q: Can I advise HMRC that I am not going to have any employees for a specified period?
A: Yes. You can submit one EPS to advise us of your 'period of inactivity'. HMRC will not expect any other return, nor any payment, for the period(s) reported.


Q: Is an employer required to submit RTI returns if they do not currently have a PAYE scheme to submit PAYE returns and do not have any employees earning above the LEL?
A: The operation of PAYE remains the same under RTI. So if an employer is not required by law to complete a 'deductions working sheet' for any employee, the employer will not be required to operate PAYE, so not subject to RTI, or have a PAYE scheme.  Where an employee earns less than the LEL and their income is not required to be reported under PAYE, the individual will be expected to inform DWP of their earnings. As part of Universal Credit, DWP will have alternative processes to collect information about income that is not reported through RTI. If an employer is operating PAYE then using RTI they will have to tell us about payments of earnings to all employees, even where an employee earns less than the LEL. This is a change from now, where employers do not have to maintain a P11 if someone earns, for example, £20 a month.

Reporting details of employees earning below LEL is required to:

Where an employee earns less than the LEL and the income is not required to be reported under PAYE, the individual will be expected to inform DWP of their earnings. As part of Universal Credit, DWP will have alternative processes to collect information about income that is not reported through RTI.


Q: How will the system cope with an employee who resigns and is rehired in the same month with two corresponding payslips (two separate contracts)?
A: The system will count the two employments as separate by operating on the information submitted by the employer. The last payment from the first employment should have a date of leaving. The first payment from the new employment should include the starting information including start date and should not take into account pay and tax information from the previous contract when calculating the year to date figures. If the employer is using payroll ids they must ensure the second contract is set up using a different payroll id.


Q: I have claimed 'CIS deductions suffered' on my EPS: can I have a refund of any excess?
A: Yes you can have a refund at the year end, and if there are no outstanding debts.


Q: Date of leaving: What date should be entered on the FPS?
A: The date to enter is the date the employment ended. The exact date of this is for the employer to decide.


What will not change using RTI?

Q: What will not change using RTI?
A: The following will remain unchanged:


Q: Will RTI change the Construction Industry Scheme (CIS) payment and reporting process?
A: RTI is not changing the existing CIS process. Employers will continue to complete and file monthly returns due under the existing CIS arrangements.


Q: Will RTI be able to handle Tax Free Pay?
A: Yes


Security and the integrity of the systems used

Q: Can the Government Gateway handle the number of RTI returns that will be made?
A: Yes, HMRC is confident that the Gateway can accommodate RTI volumes.


Q: How will HMRC know the data is correct?
A: HMRC will work with employers to help improve data accuracy - for example by identifying common errors or trends.

HMRC will also be undertaking a series of compliance checks after the employer has sent the data.


Q: What happens if software developers don't adjust their products to support RTI?
A: We are working with software developers to ensure that their products are updated to support RTI.


Q: Who will be testing the software?
A: HMRC is providing test services to allow payroll providers to test their products. We are also introducing a new recognition process. Software that meets our recognition standard will be listed on HMRC's web page.


Employee information

Q: How do I deal with the fact that a lot of software does not allow you to proceed without a National Insurance number?
A: New RTI-compliant software should allow for the National Insurance number field to be left blank if the National Insurance number is not known, but you must provide the employee's address. However where possible, you should ensure that you obtain the correct National Insurance number for your payroll records.


Q: If HMRC plan to monitor for each PAYE reference, will employers or pension providers who continue submitting this type of temporary, blank or incorrect National Insurance number data, for reasons beyond their control, be penalised? Will there be some sort of initial appeal mechanism such as reasonable excuse?
A: HMRC would prefer employers and pension providers have processes in place to ensure they can obtain correct personal details including the National Insurance number. It is not anticipated that HMRC will impose penalties for missing or incorrect National Insurance numbers.


Q: Is a default date of birth, (01.01.1901), in such scenarios is still acceptable?
A: You should not use a default date of birth. You should make every effort to obtain the correct date of birth for the individual, especially for new pensions coming into payment. Where, despite these efforts, it's not been possible to obtain the correct details, please continue to use the date of birth currently held on the payroll.


Q: What guarantees can HMRC provide about the accuracy of National Insurance number information that they will send to providers?
A: HMRC will attempt to validate National Insurance numbers provided by checking with the DWP. In cases where there is a discrepancy, or where the employer has not provided a National Insurance number, HMRC will inform the employer.

If the annuitant queries the National Insurance number provided by HMRC, the annuitant should contact HMRC to resolve the query.

The more accurate and comprehensive employee data the employer gathers and maintains, the more likely it is that the National Insurance number provided will be correct.


Q: Whilst employers and pension providers may request sight of a passport occasionally to verify age, the actual passport number is not recorded on our system and to do so would mean a costly rebuild. Do I now always need to request this number?
A: The passport number will only have to be provided if the employer or pension provider collect it as part of their checks that the employee or pension recipient is entitled to work in the UK or receive a UK based pension. HMRC is not asking employers to make large, expensive changes to their business processes to allow them to report this information.


Q: Making submission of certain data items mandatory could result in employers and pension providers having to implement costly alterations to their new business acquisition processes, application forms, training, etc. Is there any information on what data is mandatory and which is optional?
A: HMRC has published the list of the data items on its internet site, indicating which are mandatory and optional.


Q: Why is it important to check the details I hold about my employees are accurate?
A: It has always been important to make sure the information that you send HMRC about your employees is accurate to help ensure that your employees pay the correct Income Tax and NICs. Improving the accuracy of the information you hold and send to HMRC will help match the information to the correct HMRC record. This could save you money by helping to reduce the number of employee enquiries you receive.

This is not just important for tax and NICs. From October 2013, RTI will support Universal Credit by providing the DWP with up to date information about claimants' employment income. Ensuring your employee information is correct will help to ensure they receive the right amount of credit.

As part of the process for an employer joining RTI, HMRC will align the records of employees held on the NPS system and the records held by employers. HMRC will publish more information about the 'employer alignment' process soon.

In the meantime HMRC recommends that you start to prepare for RTI by checking the information you hold.


RTI and individual employees

Q: How does RTI affect me as an individual?
A: Generally, you probably won't see much if any difference in your working day. However, using RTI, employers and pension providers will need to ensure that their employee records are up to date. They will also send information to HMRC when or before they pay their employees. This better quality, more up-to-date information will mean that, over time, more people will pay the correct tax in-year.

HMRC will also have the RTI needed to support the introduction of the DWP's Universal Credit in October 2013. Universal Credit will need up to date information about employment and pension income from RTI so that the DWP can adjust claimants' welfare payments to reflect their circumstances.


Q: How does RTI support the payment of Universal Credit?
A: RTI will support Universal Credit when it is introduced by providing DWP with up to date information about claimants' employment income.


Q: If RTI supports Universal Credit I am concerned that it will affect the benefits I receive
A: Changes to means-tested benefits (including Working Tax Credit, Child Tax Credit, Housing Benefit, Income Support, income based Jobseeker's Allowance and income related Employment and Support Allowance) will not happen until 2013 at the very earliest. Universal Credit is being administered by the DWP and they will tell you about any changes that may affect you well before they take place. More information can be found on their website.


Q: Will my employer have access to information about the Tax Credits I get?
A: No. Your employer cannot tell that you are getting Tax Credits.


Q: What happens if I leave my job?
A: Using RTI employers will still give leaving employees a form P45 showing their pay and the tax deducted.


Q: What happens if I start a new job?
A: Using RTI you still need to give your new employer the form P45 given to you by your previous employer so they can operate the correct tax code. You will also need to answer some new starter questions. Getting this information right is good for everyone and will help make sure the right amount of tax is paid, and get credit for the NICs you pay.


Q: What happens if I don't have a P45?
A: This has not changed. Your employer will ask you some new starter questions similar to completing a form P46 so they are able to operate the correct tax code. As stated earlier, it's really important to provide the right information for these questions.


Q: What additional information do I need to give to my employer?
A: Using RTI there is little change to the information you give to your employer. To help get your tax right and make sure you get credit for the NICs that you pay, you should provide:

Your employer will need to verify this information from an official source, such as your birth certificate, passport, driving licence or official documents from HMRC or the DWP.


Q: Does RTI mean that I won't need to tell HMRC about changes to my circumstances such as if I change my title, name or address?
A: No. It remains your responsibility to notify HMRC of any change in your circumstances

You still need to tell us about these changes, even if you've also told your employer, because when your employer updates their records, these updates won't automatically be passed to HMRC for data security reasons.


Q: Will I still receive a form P60 using RTI?
A: Yes. Employers will still provide you with a form P60 at the end of each tax year.


Q: How will RTI affect the tax I pay?
A: There is no change to the way PAYE is operated. However, using RTI, HMRC will receive more up to date information about your pay and tax. Over time we will start to use this information to help adjust more people's tax and NICs so they pay the right amount in-year.


Q: I get Tax Credits: how will it affect them?
A: RTI will be used to help us pay you the right money at the right time and to renew claims. We will use RTI for renewals from April 2014 but you still need to report earnings/income changes to us.

Universal Credit will replace tax credits between 2013 and 2017. Universal Credit will be administered by the DWP and RTI will be used as part of that system. More information can be found on the DWP website.


Q: I get Child Benefit: will RTI affect it?
A: Child Benefit will not be affected.


Q: What happens if I lose my job and need to claim Jobseeker's Allowance?
A: This will not change until the introduction of Universal Credit by the DWP in 2013. You can find more on their website.


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HOT ISSUE:   REAL TIME INFORMATION
Status:                      “Live”. (Keep checking here for the latest commentary)