Wednesday, 10 April 2013

RTI - HMRC make a small concession

HMRC has bowed to pressure and will allow some employers more time to submit their RTI reports.

PAYE Real Time Information (RTI) is mandatory for employers from April 6. Since this date, each time you pay an employee you must report their earnings and the corresponding tax and NI contributions to HMRC no later than when you pay your workers. However, it's now offering a little leeway.

HMRC's press release of March 19 is worded a little oddly; it says that employers with fewer than 50 employees can defer making their RTI reports until "the date of their regular payroll run but no later than the end of the tax month (5th)".

In practice. Tax months end on the 5th of the month. Therefore, HMRC is saying that if you pay your workers weekly, say on a Friday, then for the April tax month paydays will be the 12th, 19th, 26th plus May 3. You must make an RTI report for these by no later than May 3, but only where this is the date on which you work out the total tax and NI payable for the month for each employee. If you run a full payroll earlier, then a report will be required at that time.

The RTI reporting concession is short lived. Only payments to employees up to and including October 5 are covered. Thereafter, every time you make a payment you must submit an RTI report.

Under current rules employers, no matter how many workers they have, don't have to make an RTI report for certain one-off or unusual payments until they make their main payroll run.


  1. I telephoned HMRC and said that I understood that as Church Tresurer I now had to make returns of all 'employees' - organist, cleaners ??? and was tole I had press button 4 and should have pressed 3! Failing to transfer me I was tole that someone would ring me back - still waiting!!!

    Jim Baker

  2. Jim, Good luck with HMRC, my understanding was that if all employees are below the Lower Earning Limit (currently £109 per week) and a PAYE scheme is not already open, then there is no need to start a new scheme and therefore no need to report. If just one employee goes above this limit then all employees need to be included under RTI.

    This seems to scupper the whole idea behind RTI but there you go!

    Duncan Akers