HMRC to send out RTI advice

HM Revenue & Customs is due to send out letters to every UK firm that did not take part in the recent Real Time Information (RTI) pilot, informing them of the steps they must take to prepare for the biggest change to the PAYE system for over 60 years.

The government intend to introduce a single benefit payment system in October 2013 and RTI is a key element of this.  The first real time submissions to the system will be made in April 2013 and the system will be managed by the Department for Work and Pensions.

Under RTI employers and pension providers will send HMRC information about tax, National Insurance contributions, student loans and other deductions, every time they pay their employees.  The new system is an attempt by HMRC to keep more accurate records and ensure more people pay the correct tax.

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