An advertising campaign heralding the biggest overhaul of the PAYE system in almost 70 years was launched today by HM Revenue and Customs (HMRC).
The new PAYE reporting system, known as Real Time Information (RTI), will be introduced from April 2013, with employers reporting each time they pay their employees, rather than yearly. It will reduce administrative burdens for employers by around £300 million every year.
Ruth Owen, HMRC’s Director General Personal Tax, said:
“Winston Churchill was Prime Minister when PAYE was introduced. Little has changed in the system in about 70 years and it no longer fits the needs of a modern workforce.
“Now is the time for employers to act, including ensuring all employee information is correct and up to date. All the information they need is on our website.
“RTI will improve the operation of PAYE for employers, HMRC and employees. Feedback from employers in the pilot is that reporting PAYE in real time is easy.”
A range of RTI software is available, including free software for micro businesses with nine or fewer employees.
Davenports Accountancy is ready for RTI, and we offer a full payroll service. For further information please contact us on 0845 351 0381 or visit our website www.davenportsaccountancy.co.uk