Partner Article

Real Time Information pilot launched by HMRC

A HM Revenue & Customs pilot scheme has been launched to test the effectiveness of Real Time Information (RTI) return submissions.

Under the initiative, 10 volunteer employers will tell HMRC about PAYE payments at the time they are made, as opposed to only at the end of the year. It is hoped that this will make it easier for employers, pension providers and HMRC to administer PAYE.

The wider introduction of RTI will begin from April 2013, with the hope that all employers will be using RTI by October 2013.

David Gauke, Exchequer Secretary, said: “HMRC is committed to a smooth and on-time transition. The start of the pilot today demonstrates that RTI is on track.

“RTI will remove administrative burdens of £300 million a year from employers, mainly from the abolition of the end-of-year PAYE returns process – the biggest single contribution that any tax change could make.”

HMRC is one of the organisations involved in the pilot scheme. Stephen Banyard, Acting Director General for Personal Tax believes that this testing period will help to ensure that the project is a success when it is introduced to the wider business community.

He said: “We have been working in close partnership with stakeholders to ensure that RTI will be introduced progressively, to give time for testing the new systems and processes and allowing them to bed in.

“The pilot will allow us to iron out any wrinkles in a small, controlled environment so that we can ensure RTI is working smoothly as more and more employers join the pilot.

“We are working closely with employers and the payroll industry but having HMRC take part in the pilot will allow us to see first-hand how it is working from an employer’s perspective.”

The new RTI scheme will support the operation of Universal Credit, the new welfare programme which will unify means-tested in and out of work benefits, Tax Credits and housing support.

The Minister for Welfare Reform, Lord Freud, said: “I welcome the pilot announced today – both Universal Credit and RTI are on track and on time to support the implementation of Universal Credit from October 2013.

“Interlinking Real Time information with Universal Credit will enable us to process claims automatically and more efficiently, allowing us to make the right payment based on real time earnings.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .