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Real Time Information updates for employers

Real Time Information changes means that employers have to submit PAYE information to HMRC every time they pay their employees.

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Back in 2013, Real Time Information was introduced meaning that employers have to submit PAYE information to HMRC every time they pay their employees.

Overall it seems that employers have adjusted to the scheme well, but HMRC has now issued some guidance to help solve some of the teething problems it has encountered.

Submit the correct number of hours worked

It is important that you record the correct number of hours your employees normally work to help ensure that they receive the right amount of benefits and tax credits they are entitled to. You should only select the option ‘other' if your employee does not have a regular pattern of employment or the payment relates to an occupational pension or annuity.

National Insurance number verification requests HMRC reports that it has received a number of queries from employers and employees about verifying or obtaining National Insurance numbers for the purposes of reporting PAYE in real time. Employers are receiving rejections for National Insurance number verification requests (NVRs). This is because they are sending the request before they have made their first Full Payment Submission (FPS), not because the number is wrong. Wait two weeks after sending your first FPS before sending an NVR.

Setting up an annual scheme

HMRC can now change the status of PAYE schemes to annual. To qualify for an annual scheme businesses must meet all of the following requirements:

  • All employees in your PAYE scheme are paid annually
  • All employees are paid within the same, single tax month
  • The employer is only required to pay HMRC annually

More information on RTI for businesses can be found here.

Updated 23rd June 2016

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