Real Time Information (RTI)
Real Time Information (RTI) is the biggest change to employment since the introduction of PAYE.
In April 2012, 310 employers volunteered to try a pilot scheme run by HMRC
In July 2012 a further 1300 volunteers joined the pilot scheme.
In November 2012 around 250,000 further employers volunteered to join the pilot scheme.
Staggered from April 2013 all employers must comply with RTI.
From April 2015 the Rolling start is complete and ALL employers must now comply fully with RTI.
Real time information is a system where you must inform HMRC 'On or Before' the time you pay your staff wages.
You must inform HMRC of ANY payments to ALL staff, whether they are under or over the tax threshold, whether its £100's or just 1 penny.
The only exception to this is, if ALL your staff are under the lower earnings limit and NONE of your staff have second employment elsewhere.
If any of your employees subsequently pay tax or get further employment you MUST place all your employees on a payroll.