HMRC starts an ‘RTI awareness’ campaign

by Tax Faculty Team on 22.05.2012 03:50

Agents will shortly be sent an email


HMRC is about to begin a programme of ‘RTI awareness’ for agents. This is designed to make sure agents and their clients are ready for Real Time Information (RTI) in advance of its introduction. The awareness programme is being conducted through the HMRC website, the publications Agent Update and Working Together, and the Agent Account Manager network.


Agents who have registered for the Agent Account Manager Service and/or for Agent Update will shortly receive an email from HMRC about RTI. The full text of the email is as follows:


Getting your clients ready for changes to Pay As You Earn:

Real Time Information


Thank you for registering for the HMRC Agent Account Manager service. As part of this service we will occasionally provide you with useful information which is targeted specifically to help you with your dealing with HMRC. If you need more regular information relating to changes to HMRC services you may find it useful to sign up for our bi-monthly Agent Update.


This email is for information only and the mailbox address used is not a response address for correspondence.


From April 2013 HM Revenue & Customs is introducing a new way of reporting PAYE: Real Time Information – or RTI. RTI will bring PAYE into the 21st century. It will make PAYE easier for employers, pension providers and HMRC to administer and over time, more accurate for individuals. Real Time Information is also essential for the smooth introduction of Universal Credit by the Department for Work and Pensions.


Most employers will be legally required to send PAYE information in real time from April 2013, with all employers submitting PAYE information this way by October 2013.


What do you need to think about now to make sure you and your clients are ready?


Data Quality – The quality of the employee information that we hold and process is crucial to the successful introduction of submitting PAYE information in real time. Mismatched information accounts for over 80% of data quality issues we have, so we recommend you start to prepare by checking the details you and your clients hold for employees, in particular:


·        National Insurance number

·        full names

·        date of birth


For more information on Data Quality see http://www.hmrc.gov.uk/rti/dip/index.htm


Payroll Alignment – This is an important process that ALL employers and pension providers will need to undergo. Alignment will ensure that HMRC, you and your clients all hold a consistent view of the employees in every PAYE scheme before you start to send us PAYE information in real time. To do this, you will have to provide details of all employees who have been on the payroll since the start of the current tax year – even if they have not been paid in the relevant period or have now left the payroll.


It is therefore vital that your own and your clients’ records are up to date. There is more information about payroll alignment at http://www.hmrc.gov.uk/softwaredevelopers/rti/payroll-alignment.pdf


Payroll software – If you use payroll software, it will need to be updated so that it can submit PAYE information in real time. If you use a payroll software provider, please contact them. If you need help picking a payroll software package that is capable of submitting PAYE information in real time, please go to http://www.hmrc.gov.uk/softwaredevelopers/paye/rti-software-forms.htm HMRC’s Basic PAYE Tools product is also available free of charge to employers with 9 or fewer employees.


RTI pilot – A year-long pilot started in April 2012, with HMRC and volunteer employers working together to thoroughly test the new process. If you or any of your clients want to take part in the pilot, please contact your software provider before 30 June 2012.


We have published PAYE guidance for those participating in the pilot, which you may find useful in your planning, at http://www.hmrc.gov.uk/payerti/


For more general information on submitting PAYE information in real time please see http://www.hmrc.gov.uk/rti/index.htm


From June 2012 Agent Account Managers (AAMs) will be available to deliver a presentation on RTI. To find out more please see http://www.hmrc.gov.uk/agents/contacting-effective.htm#8