Tax change for PAYE
Published: 31 January, 2013
HMRC has confirmed that it will go live with Real Time Information reporting for PAYE and National Insurance Contributions from April this year.
This is a significant change which will require all employers to make a PAYE/NIC return for each employee on or before the pay date.
It is a new system introduced by HMRC to report pay, tax, NI and other details each time the payroll is processed be it weekly, 2 weekly, 4 weekly or monthly.
Previously, all employers were required to submit a P35 or P14 at the end of the tax year. With the introduction of Real Time Information submissions sent each pay period, HMRC will no longer require this end of year information after the 12/13 year end and can instead keep track of all processes in 'real time'.
From April 2013, it will be mandatory for all employers with less than 5000 employees to make Real Time Information submissions.