PAYE Real Time Information (RTI) - is it working?

from the desk of Bookkeeper Derby

Camping holidays are nice.  They are an opportunity to 'get away from it all' especially if one is forced to leave behind all means of connecting with the outside world, including my mobile-that can send emails/posts to twitter/facebook/surfs the net- phone.  It does mean though that on ones return to civilisation one is forced to spend a nominal day playing 'catch-up'.

There are several topics that caught the attention, the most intriguing being the topic of  PAYE Real Time Information (RTI). 

In an article posted on the HMRC website:  The tax revolution starts – PAYE Real Time Information (RTI) pilot begins

David Gauke, Exchequer Secretary suggested that:

”RTI will remove administrative burdens of £300 million a year from employers, mainly from the abolition of the end-of-year PAYE returns process – the biggest single contribution that any tax change could make.”

Currently the pilot scheme involves 10 volunteer employers with this number increasing to 310 employers joining in May and June 2012.  By March 2013 nearly 250,000 employers will be on board.

In the grand scheme of things introducing an up to date reporting system makes perfect sense, year old data is useless in anyones books.  And if it saves us all money -  well surely all of us will benefit. 

And I use the word 'benefit' loosely.

 RTI will eventually support the operation of universal credit, the government's welfare programme that brings together means-tested in and out of work benefits, tax credits and support for housing.

 Suddenly the call of the wild outdoors is very hard to resist.



BKD

External Sources:

HMRC:  The tax revolution starts – PAYE Real Time Information (RTI) pilot begins

The Guardian:  Real Time Information PAYE pilot goes live at HMRC