Insurers not ready for HMRC’s real time information initiative

Only 11% of respondents believe insurers will be ready to implement HM Revenue and Customs’ (HMRC) real time information (RTI) initiative on time, according to a survey conducted by Xafinity Paymaster.

The Xafinity Paymaster annuity industry survey 2012 also found that 46% of respondents believe the financial services industry will not be ready, while 43% do not know or do not have a view.

HMRC’s initiative to improve the operation of pay as you earn (PAYE) through the RTI initiative will mean information about PAYE payments will be submitted throughout the year as part of the payroll process, rather than at the end of the year.

Xafinity Paymaster has been appointed to pilot RTI with volunteer organisations across its pensioner and annuity business.

Brian Please, business development manager insurance at Xafinity Paymaster, said: “Our advice to the industry is that any hopes of a delay to the implementation of RTI should be laid aside.

“Regardless, we can only expect a very bumpy ride as insurers and HMRC rush to try and meet the RTI deadline, which also coincides with the implementation of the first wave of auto-enrolment, with deadlines for larger firms starting on 1 October 2012.”

Read more on auto-enrolment and pensions reform