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.
- 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.
Following inbound/outbound interfaces are unaffected
- P60 - year end payment summary report
- P45 - leaver process
Below lists the interfaces ‘TO’ and ‘FROM’ to HMRC
- 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.
- 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:
- 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 necessary technical components
- End to End process testing.
- Performance testing – This is very critical for mission critical application like payroll.
- Production Deployment
- 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.