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Real Time Information (RTI) is the biggest change to employment since the introduction of PAYE.

In April 2012, 310 employers volunteered to try a pilot scheme run by HMRC

In July 2012 a further 1300 volunteers joined the pilot scheme.

In November 2012 around 250,000 further employers volunteered to join the pilot scheme.

Staggered from April 2013 all employers must comply with RTI.

From April 2015 the Rolling start is complete and ALL employers must now comply fully with RTI.

Real time information is a system where you must inform HMRC 'On or Before' the time you pay your staff wages.

You must inform HMRC of ANY payments to ALL staff, whether they are under or over the tax threshold, whether its £100's or just 1 penny.

The only exception to this is, if ALL your staff are under the tax threshold and NONE of your staff have second employment elsewhere.
If any of your employees subsequently pay tax or get further employment you MUST place all your employees on a payroll.

Example 1.
Mr Smith owns a pub, it mainly serves food, he is the Chef and his wife tends to the bar.

He employs 3 waiter's to serve food, he pays each £20 p/night for 3 night, so £60 p/week.
None of the waiters have any other employment.
His pub is a proprietorship (Not a Limited Company) so he does not pay himself or his wife wages (he takes drawings)

He does not need to set up a payroll as no employee pays tax.

Mr Smiths wife is struggling behind the bar and needs help, They Employ a barman at £210 p/week.

The Barman DOES pay tax, this means a payroll must be set up and ALL employees must be on it. This includes the 3 waiters (but not Mr and Mrs Smith)

The Barman then leaves.

Mr Smith must still keep the payroll, even though he is back to only the 3 waiters.

p45

If you are an Employer and you have someone leave your payroll. You must issue them with a P45.

This shows the new employer their total wages and tax paid to date.

Call or Write to

Abacus Accountants
9 Ruthin Road
Denbigh
Denbighshire
LL16 3EH

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01745 814440

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