HMRC
Real Time Information (RTI)
What is RTI?
RTI
is the HMRC Real Time Information initiative.
It requires employers to provide an electronic data feed directly to
HMRC for each payroll run. Using RTI, employers and pension providers will tell
HMRC about tax, National Insurance contributions (NICs) and other deductions
when or before the payments are made, instead of waiting until after the end of
the tax year.
RTI will:
- Make the PAYE process simpler and less burdensome for employers and
HMRC for example by removing the need for the end of year return (forms
P35 and P14) and simplifying the employee starting and leaving processes
- Make PAYE more accurate for individuals, over time reducing the number
of bills and repayments sent after the end of the tax year
- Enable HMRC to pursue late payments more effectively
- Support the payment of Universal Credits
- Reduce Tax Credits error and fraud
Employers and pension providers will send this
information to HMRC online for payments made to all their employees including
those paid below the National Insurance Lower Earnings Limit (LEL).
More
information is available under http://www.hmrc.gov.uk/rti/
By April 2013 almost all employers and pension
providers must be reporting their payroll information to HM Revenue &
Customs (HMRC) on or before every payday.
RTI means that
earnings and deductions are submitted weekly or even by payroll run instead of
annually.
Current
HMRC reporting is once yearly by P14 & P35 submissions providing both total
relevant earnings and deductions to HMRC both both in detail and summary
formats.
HMRC Interfaces:
Following
inbound/outbound interfaces are unaffected
- P60 - year end payment summary
report
- P45 - leaver process
- P6
Below lists the interfaces ‘TO’ and ‘FROM’ to HMRC
Outbound Interface(s):
- Employer
Alignment Submission (EAS) – It is to allow HMRC to match their records with
the employer records and if necessary update their records. This is the
first stage of RTI but the intention is that once the EAS has been
accepted employers will not need to submit this again.
- Full Payment
Submission (FPS) – It is employee payment information that is sent to HMRC.
For each pay run, this data needs to be sent to the HMRC along with the
BACS Payment. Note: BACS payment file also needs to be adjusted for RTI
process.
- Employer
Payment Summary (EPS) – It is used in pay periods when no employees have
been paid or when the employer needs to report a reduction in the amount
they will pay over to HMRC. This is to report a reduction in the amount the
employers pay to HMRC or if employers haven't paid any employees in a pay
period.
- National
Insurance Number Verification Request (NVREQ / NINO) – Employer
can verify the NI number given by the employee. HMRC’s matching of data
sent to a particular employee will be dependent on the NI number, so it
will be crucial for the employer to keep accurate data.
Inbound Interface(s):
- National
Insurance Number Verification Response (NVRES / NINO) – It is the
employer can verify the NI number given by an employee.
Also,
the year end report to the PAYE (P60) is unaltered. Currently via Oracle
delivered P14/60 process, the year end data can be printed on the HMRC
template.
Our RTI implementation Offer includes:
Design
- It includes, deployment of RTI related bundle/POC delivered by Oracle.
- Map the current system to the RTI process.
- Identify potential gap and do the fit gap analysis.
Develop
- Develop necessary technical components
Test
- End to End process testing.
- Performance testing – This is very critical for mission critical
application like payroll.
Rollout
- Production Deployment
Support
- Warranty support includes 30 days of production support cover
- Additional long term support shall also be provided
Our Value Addition:
RTI
Preparation process Streaming (All GP jobs are streamed for better performance.
RTI Streaming is currently not delivered by Oracle)
Electronic
P14/60 – Implemented at one of the largest specialist recruitment organization
in UK.
Electronic
P14/60 Success Story:
By
Implementing Electronic delivery of P60 report, there was huge saving on the
postage cost. Also, the electronic documents can be easily accessed by employee/administrators
for reprint/resent.
RTI Implementation duration:
The
whole implementation can be carried out in 3 months.