HM Revenue & Customs (HMRC) has asked Lawspeed to let our clients and readers know that help is available for payroll departments who may be struggling with the new Real Time Information system.
Since 6 April, employers have had to use a new way of reporting PAYE called Real Time Information (RTI) where they report each time they pay their employees, rather than annually. This updates the PAYE system so that it is quicker, easier and more accurate.
HMRC is working with employers to reduce the number of data errors and improve the quality of information it receives.
Staff from HMRC plan to visit 1,000 of the largest employers and have set up a website with help sheets, webinars and You Tube clips to assist smaller companies.
RTI is intended to benefit employers who should gain from simpler reporting requirements and the abolition of the extensive annual tax return that the old system required.
David Gauke, Exchequer Secretary to the Treasury, said: “ This is the biggest revolution in PAYE in around 70 years and will reduce the costs of administration for businesses by around £300 million every year.”
For employees, RTI will begin to reduce the number of cases where someone is found to have under or overpaid tax during the year.
HMRC is offering a range of help for businesses including free software for employers with nine or fewer employees, targeted flyers and emails, regular live Twitter Q&As, YouTube videos and roadshows across the country.
Visit the HMRC website for help and support.