Under RTI, employers with PAYE schemes have to send details to HMRC every time they pay an employee, at the time they pay them, and notify HMRC when no such payments are made in a tax month. The information must be sent to HMRC online, and you use a Full Payment Submission (FPS) to do this.
The payroll software you use will generate the RTI reports you need and submit payroll information online. These include details of:
- the amount you paid your employee(s)
- deductions, such as Income Tax and National Insurance contributions (NICs)
- starter and leaver dates if applicable
RTI has been the biggest change to PAYE processes since 1944. With its introduction, end-of-year forms P35 and P14 have been made redundant and the starter and leaver process is simplified by using FPS to communicate to HMRC.
The tax coding, P60s, expenses and benefits reporting (through P9/P11) and the payment deadlines to HMRC still remain as before