RTI – The Summary

Over the last few months, we have taken a step-by-step approach to the exciting new prospect in our payroll lives which is Real Time Information.  This Newsletter leaves you with a summary of the submissions and some thoughts.

We have covered all of the five submissions that we are going to have in our departments in the next 18 months.  These can be summarised:

The Employer Alignment Submission (EAS)

A once-only submission designed to align HMRC’s National Payment System (NPS) with the personal details held in your payroll system.  Mandatory for 250 employees or more PAYE references, optional for others

The Full Payment Summary (FPS)

This is, probably, the main RTI submission that employers will be required to make.  It will contain details of the employees together with the payments and deductions that have been made in the current pay period

The Employer Payment Summary (EPS)

This is the submission which allows the PAYE scheme to report any adjustment to the totals that have already been submitted via the FPS.  It is, probably, the second-most regular submission after the FPS.  This will be essential where, for example, the FPS totals have to be adjusted by the value of any SMP that can be reclaimed in the tax month or quarter

The National Insurance Verification Request (NVR)

This is the submission that will enable an employer to trace or verify a National Insurance Number that has been used in the payroll

The Earlier Year Update (EYU)

The EYU is the submission used to correct errors made in a previous tax year.  It is used when an error on the FPS is noticed on, or after, 20 April in the following tax year – i.e. 20 April 2014 for the tax year ended 05 April 2014

Final Comments

There is no doubt that RTI will bring changes to the workplace.  Some thoughts as we leave this fascinating subject:

• Remember that RTI is all to do with a change in the way that we report information to HMRC.  It is not about a change in PAYE processing
• Inevitably, RTI will mean a change to our payroll processes, however, change is commonplace within the payroll department, and this is just another change
• Improving and maintaining internal communication is going to be vital.  Think of these departments / people with which we interact:
  • Human Resources (who provide us information)
  • Finance (who rely on us for information)
  • Managers (who meet our deadlines)
  • Employees (who ask us questions)
• Improving and maintaining external communication:
  • Software providers (are their products RTI-ready, what will they be doing for us, how will the submissions work in their products, what will we have to do differently?)
  • Outsourced providers / Payroll Bureaux (are you using software that is RTI-ready, what will you be doing on our behalf, will you be charging us and should we consider an updated Service Level Agreement?
• The Learn Centre – can we provide any training to your colleagues in HR, Finance or within your organisation?  Can we provide any consultancy to help you?  Would you benefit from one of our RTI Seminars?

Further Information

• Payroll Help’s RTI Coverage
• Improving the Operation of Pay As You Earn (PAYE) – HMRC Impact Assessment
• Universal Credit – Welfare that Works
• Improving the Operation of Pay As You Earn (PAYE) – Collecting Real Time Information
• HMRC Press Statement 04 April 2011
• HMRC Statement 13 May 2011
• Summary of Responses 30 September 2011
• HMRC – Draft RTI Regulations (PAYE)
• HMRC – Draft RTI Regulations (NICs)
• HMRC – Draft RTI Regulations (CIS)
• HMRC W– Draft PAYE Direction (Technical Note)
• NDS – HMRC Press Statement 23 November 2011
• HMRC – Employer Bulletin 39
• NDS – HMRC Press Statement 12 December 2011
• HMRC – Improving Your Payroll Data
• HMRC – Starters and Leavers Scenarios December 2011 (removed by HMRC 2012)
• HMRC – Technical Note ‘Proposal to Abolish the P45/P46 Forms’
• HMRC – Initial Guidance on RTI Items May 2011
• HMRC – Payroll Alignment January 2012
• HMRC – PAYE Update 10 – NINO Verification Response (NVREP)