How HMRC’s Real-Time Information (RTI) Affects Payroll Processing

Real-Time Information (RTI) is HMRC’s system for collecting payroll data in real time, and it has transformed the way businesses submit information. While RTI aims to improve tax accuracy, it also places a heavier burden on businesses. Failure to comply can lead to penalties, so understanding how RTI affects your payroll processes is essential.

Introduced in 2013, RTI requires employers to submit payroll data to HMRC every time they pay employees, rather than just once a year. The purpose of RTI is to ensure that employees' taxes are calculated and deducted correctly throughout the year. However, the system has become more stringent, with penalties for late submissions or incorrect information.

Benefits of RTI:

• Increased Accuracy: Taxes and National Insurance contributions are processed in real time, reducing end-of-year corrections.

• Improved Transparency: Employees and HMRC have a clear, up-to-date view of earnings and tax deductions.

Challenges for Businesses:

For many businesses, especially those with temporary or part-time staff, keeping up with RTI submissions can be challenging. Each payment, whether weekly, bi-weekly, or monthly, requires a new submission. Missing a deadline or submitting incorrect information can lead to fines. By outsourcing payroll to The Wage Shop, businesses can ensure that RTI submissions are handled accurately and on time.

RTI compliance is critical for avoiding penalties and keeping your business running smoothly. With expert payroll services from The Wage Shop, you can focus on your core business while we handle real-time reporting.

Ensure accurate and timely RTI submissions—get a free payroll review from The Wage Shop today.