The Chartered Institute of Payroll Professionals (CIPP) has sent its first real-time information (RTI) submission.
Exchequer secretary David Gauke was on hand at the CIPP’s offices in Solihull to observe the payroll department send 145 employer details as part of its first RTI submission.
RTI, a new way for employers to report their employees’ pay and tax details, is intended to make it easier for employers, pension providers and HM Revenue and Customs (HMRC) to administer pay-as-you-earn (PAYE).
Employers and pension providers will tell HMRC about PAYE payments at the time they are made, rather than at the end of the year.
A pilot of the programme started in April 2012. All employers will have to comply with the new rules by April 2013.
CIPP’s payroll provider for the project is Sage UK.
David Gauke, Exchequer Secretary, said: “RTI is the single biggest innovation in the administration of the tax system since PAYE was brought in after World War II.
“Its introduction will remove administrative burdens from organiations of around £300 million each year and will support the operation of Universal Credit.
“The RTI pilot is going well and on track for April 2013 when most employers will start reporting PAYE in real time.”
Lindsay Melvin, chief executive at the CIPP, added: “Our experience on the RTI pilot has gone very smoothly and it has given us the confidence and practice to report our PAYE data in real time going forward.
“We support all of HMRC’s ambitious efforts to introduce RTI as seamlessly as possible by April 2013. We would encourage all employers that have not signed up to be in the pilot to investigate the requirements and consider joining as soon as possible. The benefit of doing so is invaluable.”
Karen Thomson, associate director of policy, research and strategic visibility at the CIPP, and Phil Nilson, stakeholder engagement team, HMRC real-time information programme, will speak on RTI at Employee Benefits Live on 25 September.
Read more articles on the real-time information programme