Phasing in from April 2013, Real Time Information (RTI) will mean submitting payroll returns to HMRC each time employees are paid, instead of just once a year as is currently required. The aim is to increase up-to-date and accurate information and to avoid errors. If you are not already using a payroll provider such as ePayMe, this is what you will need to do to get ready to operate PAYE in real time. Between April 2013 and October 2013, almost all employers and pension providers will start reporting payroll information to HM Revenue & Customs (HMRC) on or before every payday – instead of after the end of the tax year, as now. These reports will be made online using payroll software – and you’ll no longer have to separately report new starters and leavers, or send in certain end-of-year forms. You’ll need to take several actions to prepare for PAYE Real Time Information (RTI). Some of these can be started now – the sooner you start, the easier it will be. What you will need to do: Ensure employee data is complete and correct – You should start doing this now.Before starting to send information in real time it’s essential that the data you hold in your payroll records is complete and accurate. Inform staff and change your procedures – You can start informing staff and developing new procedures now. Before starting to send information in real time it’s essential that the data you hold in your payroll records is complete and accurate. Recording changes to employee status – As well as recording additional information when you first take a new employee on, you may need to make changes to an employee’s payroll record. For example, if an employee takes unpaid leave, you may need to set the irregular payment indicator or HMRC may assume that they’ve left your employment. You’ll also have to record when an employee starts or stops a directorship, and other events too. Reporting your payroll information – You’ll need to report your payroll information electronically, on or before any day when you pay someone. This will normally be carried out by your payroll software (or your payroll provider such as ePayMe) at the same time that the payments are calculated, or just afterwards. So you’ll have to review the processes throughout your organisation, to check that you’ll have the information you need, and the resources available to record and report it, on time – whether weekly or monthly. You should be aware that you may need to report certain payroll information at other times too. New starters – You won’t report new starters to HMRC separately any more. Their information will be automatically sent when you report your payroll information – if it’s set up correctly in your payroll records. So you’ll need to have processes ready to collect and record the correct personal information from new starters, as well as certain additional data. You’ll need to record whether someone is a casual employee or not, and the approximate average number of hours they work – and also the passport number for new employees, if you recorded it as part of your checks that they are eligible to work in the UK. You’ll also need to report payroll information even for those under the Lower Earnings Limit (LEL), or those paid just once a year, and any temporary or casual staff. So you’ll need to start including these people on your payroll system, if you don’t already – and be sure to get their employment status right. Leavers – You must continue to provide a form P45 to employees who leave – but don’t report the P45 part 1 information to HMRC using PAYE Online for employers any more. Instead, set their leaving date on their payroll record so it will be automatically sent next time you report your payroll information. You won’t have to report leavers as a separate process any more. Year-end – You will no longer have to complete an end of year return or P38A supplementary return, because your payroll software will tell HMRC about all payments made each time you report your payroll information. Contingency plans – Have contingency plans ready in case of computer and/or other failures or problems, such as a loss of your internet connection. Remember, there’s no facility to make your payroll reports via email, or by filling in a form on a web page. But you can send in your reports in advance of the actual payday. If any of this information makes you think – we need a payroll provider? Rest assured that ePayMe are already doing this and have been using this method since its incorporation so has an abundance of advice and expertise regarding RTI, so for more information contact ePayMe. I am proud to say that ePayMe is HMRC compliant in all reporting aspects to support your requirements of RTI. We have various products we can offer your business, which are tried, tested and most probably being used by your competitors!