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Real Time Information pilot scheme gets underway

Real Time Information pilot scheme gets underway

HMRC is moving forward with its plans to implement Real Time Information and has received the first set of returns from its pilot scheme.

Ten volunteer employers were involved in the initial pilot and they will be joined by another 310 employers and pension providers between May and June.

Real Time Information is designed to make life easier for everybody to administer PAYE. Pension providers and employers will inform the Revenue each time they make PAYE payments instead of the current system of reporting at the end of the financial year.

Providing the pilot scheme is successful, as many as 1,300 volunteer employers will be using RTI by this September.

The Exchequer secretary to the Treasury, David Gauke, explained that RTI brings PAYE into the 21st century. Taxpayers will see the benefit as they will be taxed correctly when they change jobs and employers will no longer need to go through the onerous end-of-year PAYE processes.

HMRC is one of the initial volunteers and Stephen Banyard, the Revenue’s acting director general in charge of personal tax, said the pilot gave them the ideal opportunity to iron out any problems before more employers start using the system.

He explained that HMRC is working in close conjunction with employers and payroll providers, but by taking part in the pilot, the Revenue can see how RTI works from an employer’s point of view.

If all goes to plan, the majority of employers will need to start using RTI next April and it will mandatory by October 2013.

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Image: Night traffic (49/365) by Lars P.

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