Page 31 - LITRG_PA-final-2018

A quick word on RTI

Real time information (RTI) is a system of payroll reporting which means that
employers have to send information about their employees and their pay as and
when they are paid, rather than once a year as used to be the case.
Under RTI, the majority of employers have to send information to HMRC
electronically. This means having to get some special software so that data can
be uploaded from a home computer to HMRC. There are lots of options available
on the internet including HMRC’s own free software called Basic PAYE Tools:
www.gov.uk/basic-paye-tools

Basic PAYE Tools will:

• Record your employees details
• Handle tax code changes

• Work out and record your employees pay,

tax, NIC and any student loan deductions
every payday

• Generate the payroll data that you need to
send to HMRC in real time including starter
and leaver information
• Produce an employer payment record that
works out how much you need to pay to HMRC
• Provide integrated calculators to help you with statutory payments such as

Statutory Sick Pay and Statutory Maternity and Paternity Pay
• Transfer employee details from one year to the next so you don’t have to
re-enter their details.

• Keep your payroll records.

Basic PAYE Tools will not produce payslips, however please see page 34 for our
free solution to this.

Whilst online filing clearly is more efficient for HMRC as it reduces processing,
one of the advantages of dealing with HMRC in this way for employers is that
they can also receive things electronically from HMRC via their HMRC Online
services system. This includes things like reminders, notices, acknowledgements
and employer updates and bulletins.
The part of HMRC Online services that is for employers is called PAYE for
employers and if you want to run RTI electronically, whether by using Basic PAYE
Tools or another payroll package, you will need to set up a PAYE for employers
account. You can find more information about this by following the link below:

www.gov.uk/paye-online

page 31 Taking on a personal assistant – a basic guide • A quick word on RTI