RTI, or Real Time Information, was introduced by HMRC during April 2013. This new regime introduced the requirement of all UK employers to notify HMRC of their PAYE details prior to or at the time of making payments to employees. All information is sent to HMRC electronically via the Government Gateway.
All employers are required to submit an RTI return to HMRC each and everytime an employee is paid through the company payroll. This ensures that HMRC receive all relevant payroll information in real time.
All UK payroll software should be RTI compliant and allow the user to submit RTI data to HMRC following each pay run.
HMRC even offer free payroll software that can be downloaded from the HMRC website which allows the user to complete all payroll work as well as the RTI submissions.
PAYE Year End
The previous payroll year end has effectively been removed with no option to complete the previous annual P35 return. This allowed employers to declare their PAYE liabilities at the end of the tax year.
PAYE liabilities are disclosed during each pay run. This is a likely to be on a weekly or monthly basis for most small businesses across the UK.
Cost Effective RTI and Payroll
To ensure that this process is cost effective for you and your business you could simply complete the submissions yourself using one of the free software options. Alternatively one of our accountants can complete this work for you at a monthly cost of £5 per employee.