A new sytem for sending pay data more often to the taxman is being rolled out across the Milton Keynes region.
The Real Time Information in Pay As You Earn (PAYE) scheme will see around 4,710 South East payroll systems join the pilot in November and December 2012 ready for go-live in April 2013.
Next year employers will start to send PAYE data electronically to HM Revenue & Customs (HMRC) each time they pay their employees as part of routine payroll processes, rather than sending a separate return at the end of the year. Returns will include details of all employees’ pay, tax and deductions.
Exchequer Secretary David Gauke MP said: “RTI will improve the operation of PAYE and reduce administrative burdens on employers by £300 million every year. It will also provide up to date information about wages and tax for the forthcoming Universal Credit, so eligible employees and pensioners will get the right amount of benefits.”
Ruth Owen, HMRC’s director general Personal Tax, said: ”With a wide range of employers in the pilot, of varying sizes – including micro businesses and SMEs – using commercial software, payroll services and HMRC’s Basic PAYE Tools, we are confident that the system will work smoothly and that our guidance and support products give customers the help and guidance needed.
“The main thing now is that those employers not in the pilot do not delay but start to prepare for April 2013 now, for example, by checking their software will be updated and employee data is accurate and up to date. We have a communication campaign planned for the next few months to make sure every employer knows what to do to be ready for RTI in April next year.”
For more information visit http://www.hmrc.gov.uk/rti/index.htm