RTI CIOT & ATT Webinar Real Time Information - RTI Before viewing this webinar, please visit to ensure that you network and PC are configured correctly. Tip: Press F11 on your keyboard to enlarge the webinar player.

Speakers John Whiting – Chair Phil Nilson – HMRC Tina Riches – CIOT Director, Technical Nicola Pitcher – Saffery Champness

Reminder Please submit questions throughout the live webinar via the Questions box underneath the video screen. (questions will be addressed anonymously)

Agenda Introduction RTI – the HMRC view RTI and the CIOT Practitioner’s viewpoint Questions & Discussion – all

Pay As You Earn Improving the operation of Pay As You Earn Real Time Information Phil Nilson

05/04/2013Improving the operation of PAYE6 Reporting PAYE information in real time To modernise and improve the operation of PAYE so that, over time, PAYE deductions for individuals will become more accurate In time, RTI will also help reduce: - the administrative burdens associated with payroll - the Tax Gap - Tax Credits error and fraud To support the operation of Universal Credit for people in work when introduced in 2013 by the Department for Work and Pensions

05/04/2013Improving the operation of PAYE7 RTI - Timetable Unless HMRC has specified a later date, all employers and pension providers were legally required to submit PAYE information in real time from the first payday on or after 6 April 2013… …and, in time for the introduction of Universal Credit, practically all employers will be routinely reporting PAYE in real time by October 2013

05/04/2013Improving the operation of PAYE8 RTI: Where are we now? RTI was launched at 06:00 on 6 April On 2 May HMRC announced that over 1 million PAYE schemes were reporting in real time – over 50% of mandated employers The current figure is in excess of 1.2 million schemes Those schemes contain in excess of 20 million individuals – over half of the employee/pensioner population There have been no major issues – and feedback is increasingly positive

05/04/2013Improving the operation of PAYE9 RTI: What next? We will continue to monitor progress and, where appropriate, work with stakeholders to resolve any issues emerging Between mid-June and early-July, we intend to write to those employers who appear not to have made any real-time PAYE submissions We continue to work in collaboration with DWP towards a smooth introduction of Universal Credit from October 2013

05/04/2013Improving the operation of PAYE10 Help and support What?Where? HMRC website RTI homepage Reporting relaxation for smaller employers

RTI and the CIOT Tina Riches, Director, Technical CIOT

RTI – the relaxation - 1 Trigger - burden of on or before reporting How achieved –Months of representations to HMRC –17 bodies led by CIOT – final call to Minister Result –For small employers <50 employees –File when run payroll - by 5 th of month –Runs to October 2013

RTI – the relaxation - 2 Purpose – twofold –Time for employers to adjust – no big bang –Time to seek evidence on a need for permanent relaxation Respond to our call for evidence –Common factors of problem cases –Costs of compliance –Case studies

RTI recent developments CIOT/ATT engagement letter New starter procedures - accumulation Annual schemes – reactivated? ‘Quasi’ PAYE schemes - paper solution to digital problem – temporary? Irregular payments

RT RTI UC Don’t forget Universal Credit is coming RTI - and some reminders

Practitioner’s viewpoint Nicola Pitcher – Saffery Champness

RTI – the experience so far Straightforward payrolls typically not problematic Main areas of difficulty are: –Casual workers –Directors –Unconventional / unusual practices

Casual workers Relaxation welcome Concerns over loss of staff Possibility of non-compliance or “self- employment” Closure of PAYE scheme needed to remove RTI reporting obligation where Deductions Working Sheets not required

Directors Delays and confusion over registering annual schemes Communication and education around what is being drawn – i.e. salary / loan / dividends Benefits only schemes – “pseudo schemes”

Other issues Unconventional pay patterns Multiple pay days NI only payrolls – e.g. actors Bank charges for BACs software

CIOT & ATT Webinar RTI Questions & discussion

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