Whether you employ one worker or one thousand, Real Time Information (RTI) for payroll helps businesses stay on top of compliance and ensures employees pay the correct amount of tax.<\/p>\n
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But despite launching in 2013, some businesses still do not fully understand how to use the RTI system \u2013 potentially resulting in fines and penalties.<\/p>\n
In this blog, we\u2019re going to explore the basics of RTI so your business can stay on the right side of the law.<\/p>\n
What is Real Time Information?<\/strong><\/p>\n RTI brought the UK\u2019s payroll system into the modern age. Under the regime, employers can report changes to HM Revenue & Customs (HMRC) in real time, such as adjustments to an employee\u2019s salary, and file payroll documents electronically in advance of making any payments to workers.<\/p>\n How do I use Real Time Information?<\/strong><\/p>\n Following the introduction of RTI, employers are now required to have access to the internet and RTI-enabled software, such as Xero or QuickBooks.<\/p>\n Businesses that employ less than 10 people can use free HMRC software, but it is still recommended to use multi-functional and cloud-based software such as those already mentioned.<\/p>\n RTI information should be accurate and up to date. If your records don\u2019t match or are corrupted, HMRC may ask you to pay the wrong amount of tax or trigger a compliance investigation.<\/p>\n It is suggested that employee details are checked against official documentation, such as their passport or driving licence, to avoid unnecessary stress.<\/p>\n When do I need to report Real Time Information?<\/strong><\/p>\n Rather than waiting until the end of the year, the RTI regime requires employers to report at the same time or before each salary payment \u2013 usually on a weekly or quarterly basis.<\/p>\n This includes a Full Payment Submission (FPS), an Employer’s Payment Summary (EPS) if during a PAYE month an employer makes any statutory payments, and, if using the BACS system, an additional payment report.<\/p>\n HMRC uses these submissions to calculate the correct level of tax to be paid.<\/p>\n Get expert advice today<\/strong><\/p>\n For help and advice with related matters, please get in touch with our expert payroll team today.<\/p>\n","protected":false},"excerpt":{"rendered":" Whether you employ one worker or one thousand, Real Time Information (RTI) for payroll helps businesses stay on top of compliance and ensures employees pay the correct amount of tax.<\/p>\n","protected":false},"author":2,"featured_media":4156,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,30,56,31,60,46,88,89,28,120,121,49],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4154"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=4154"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4154\/revisions"}],"predecessor-version":[{"id":4155,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4154\/revisions\/4155"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/4156"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=4154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=4154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=4154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}