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Are you reporting in real time?

The introduction of real time reporting started in April 2013, with businesses with under 50 employees given a 12 month grace period. This means thatĀ allĀ employers should now be submitting PAYE data to HMRC every time they pay employees.

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As of 5th June more than 1.4million PAYE schemes had been successfully reported in real time; that accounts for 83% of SMEs and 77% of micro businesses.

The transition to real time reporting has been relatively smooth, HMRC have had no major hiccups and employers have adapted to the new system quickly and effectively. There are however some employers who should be using RTI but as yet are not.

Last week (19th June) HMRC began issuing letters to those employers to notify them of the missed deadline.

Have you received a letter?

Reasons why you might have received a letter and what action to take

1. You should be reporting in real time and have not yet started

You need to start reporting in real time. Check your payroll software is suitable, make sure your PAYE records are up to date, and prepare your PAYE business practices. Information and guidance can be found on our website here or on the HMRC website here.

2. You sent a real time submission on or after 5th June

Ignore the letter

3. Your PAYE scheme has closed or is no longer in operation HMRC need to be notified of this.

Go to www.hmrc.gov.uk/actnow to find out how to notify them. Remember that businesses with fewer than 50 employees may send information to HMRC by the date of their regular payroll run but no later than the end of the tax month (5th).

This exemption will only run until 5 April 2014 so all employers need to plan to be reporting in real time from April 2014.

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