RTI CIOT & ATT Webinar Real

Time Information - RTI

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Speakers

John Whiting – Chair

Phil Nilson – HMRC

Tina Riches – CIOT Director, Technical

Nicola Pitcher – Saffery Champness

Reminder

Please submit questions throughout the live webinar via the Questions box underneath the video screen.

(questions will be addressed anonymously)

Agenda

• Introduction• RTI – the HMRC view• RTI and the CIOT• Practitioner’s viewpoint • Questions & Discussion – all

Pay As You EarnImproving the operation of Pay As You EarnReal Time Information

Phil Nilson

Improving the operation of PAYE 05/04/2013

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Reporting PAYE information in real time

• To modernise and improve the operation of PAYE so that, over time, PAYE deductions for individuals will become more accurate

• In time, RTI will also help reduce:

- the administrative burdens associated with payroll- the Tax Gap- Tax Credits error and fraud

• To support the operation of Universal Credit for people in work when introduced in 2013 by the Department for Work and Pensions

Improving the operation of PAYE 05/04/2013

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RTI - Timetable

• Unless HMRC has specified a later date, all employers and pension providers were legally required to submit PAYE information in real time from the first payday on or after 6 April 2013…

• …and, in time for the introduction of Universal Credit, practically all employers will be routinely reporting PAYE in real time by October 2013

Improving the operation of PAYE 05/04/2013

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RTI: Where are we now?

• RTI was launched at 06:00 on 6 April

• On 2 May HMRC announced that over 1 million PAYE schemes were reporting in real time – over 50% of mandated employers

• The current figure is in excess of 1.2 million schemes

• Those schemes contain in excess of 20 million individuals – over half of the employee/pensioner population

• There have been no major issues – and feedback is increasingly positive

Improving the operation of PAYE 05/04/2013

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RTI: What next?

• We will continue to monitor progress and, where appropriate, work with stakeholders to resolve any issues emerging

• Between mid-June and early-July, we intend to write to those employers who appear not to have made any real-time PAYE submissions

• We continue to work in collaboration with DWP towards a smooth introduction of Universal Credit from October 2013

Improving the operation of PAYE 05/04/2013

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Help and support

What? Where?

HMRC website

www.hmrc.gov.uk

RTI homepage www.hmrc.gov.uk/rti

Reporting relaxation for smaller employers

www.hmrc.gov.uk/news/relax-small-business.htm

RTI and the CIOT

Tina Riches, Director, Technical CIOT

RTI – the relaxation - 1

• Trigger - burden of on or before reporting• How achieved

– Months of representations to HMRC– 17 bodies led by CIOT – final call to Minister

• Result – For small employers <50 employees– File when run payroll - by 5th of month – Runs to October 2013

RTI – the relaxation - 2

• Purpose – twofold – Time for employers to adjust – no big bang– Time to seek evidence on a need for permanent

relaxation

• Respond to our call for evidence– Common factors of problem cases– Costs of compliance– Case studies

RTI recent developments

• CIOT/ATT engagement letter • New starter procedures - accumulation• Annual schemes – reactivated?• ‘Quasi’ PAYE schemes - paper solution to

digital problem – temporary? • Irregular payments

RT

RTI UC

Don’t forget Universal Credit is coming

www.tax.org.uk/tax-policy/Surveys/RTI_Issues

triches@ciot.org.uk

RTI - and some reminders

Practitioner’s viewpoint

Nicola Pitcher – Saffery Champness

RTI – the experience so far

• Straightforward payrolls typically not problematic

• Main areas of difficulty are:– Casual workers– Directors– Unconventional / unusual practices

Casual workers

• Relaxation welcome • Concerns over loss of staff • Possibility of non-compliance or “self-

employment”• Closure of PAYE scheme needed to remove

RTI reporting obligation where Deductions Working Sheets not required

Directors

• Delays and confusion over registering annual schemes

• Communication and education around what is being drawn – i.e. salary / loan / dividends

• Benefits only schemes – “pseudo schemes”

Other issues

• Unconventional pay patterns• Multiple pay days• NI only payrolls – e.g. actors• Bank charges for BACs software

CIOT & ATT Webinar

RTI

Questions & discussion

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