Changes to the current system

Currently employers in the UK are required to report to HMRC at the end of each payroll year, summarising the payments to their employees and the deductions made for Income Tax and National Insurance Contributions (NICs) using a P35 employers year end return and a P14 for each employee.

From April 2013, almost all employers will be required to make regular reports to HMRC showing the employee payments, deductions (E.g. Income Tax, NICs and Student loans), and details of any starters or leavers in each payroll period.  The reports, known as a full payment submission (FPS), will need to be submitted every time a payment is made under PAYE and should include details of all employees, including those earning below the NIC lower earnings limit (£107 per week for 2012/13).

A summary of the key RTI facts  is available in the publications section of our website.  Please contact us if you are unsure about how the changes will affect your business.