Real time reporting of tax information begins in earnest from this April.
Employers must send via the Internet details of employee salaries, tax deducted, National Insurance, etc., each time an employee is paid, not just at the end of the tax year.
P35 and P14 forms will no longer be required.
HMRC wanted the penalties for late information to be fast and furious, but after a consultation period it was agreed that these penalties will be waived for the first year and not imposed until April 2014. However, there will continue to be penalties for employers who make PAYE errors.
Interest and penalties on late PAYE tax and NI contributions will not be affected by RTI. However, as an employer you need to be aware that RTI will make is very easy for HMRC to see that payments are being made on time.
Even payments only one day late could incur fines, so all payroll staff need to be aware of this. We recommend you speak to us if you have any concerns at all about this major change to your reporting processes.