The Service has registered with HMRC to undertake the taxation of expenses and benefits through the payroll system rather than on a P11D.
The information will be supplied in real time so the individual should no longer find themselves with tax arrears.
This is the biggest pay related change to impact organisations since the introduction of Pay as You Earn (PAYE) in 1944.
Real Time Information (RTI) is a new way of telling Her Majesties Revenue & Customs (HMRC) about PAYE payments at the time they are made as part of the payroll process. Payroll software will collect the necessary information and send it to HMRC online.
This means we will be submitting PAYE throughout the year a part of the payroll process rather than at the end of the year as we did previously.
RTI is only concerned with the submission of information – the payment arrangements of deducted monies will remain unchanged.
In July 2010 HMRC issued a discussion document about the current PAYE system and the reasons there was a need for improvement.