Today’s guest post comes from Claire Meredith of Zest Payroll Solutions…
The biggest change in PAYE reporting in almost 60 years will come into effect in April 2013.
At the moment, HMRC are only informed at the end of the tax year of an individual’s earnings and the deductions that were made over the year via their Employer’s end of year return.
From April 2013, Employers will be required to submit a report to HMRC of the payments and deductions made to their Employees before or at the time of making the payment to the Employee. Real Time Information (RTI) will replace the annual returns that Employers are currently required to submit at the end of the tax year (the P35s and P14s).
What is RTI?