HMRC have provided a special midweek update on PAYE related matters for sharing. The update covers Real Time Information (RTI).
Real Time Information
Under RTI, employers and pension providers will tell HMRC about PAYE payments at the time they are made – as opposed to the current annual end-of-year reporting system. We said in our update of 4 November, that RTI is on track and pilot preparation is progressing well. Publication of the draft regulations is another step on this journey.
The draft amendments affect:
- the Income Tax (Pay As You Earn) Regulations 2003 (SI 2003/2682) ('the PAYE Regulations');
- the Social Security (Contributions) Regulations 2001 (SI 2001/1004) ('the NICs Regulations'); and
- the Income Tax (Construction Industry Scheme) Regulations 2005 (SI 2005/2045) ('the CIS Regulations')
As well as the changes needed to implement RTI, the drafts also include a proposal to close the Simplified PAYE Deductions Scheme to new employers.
HMRC would welcome comments you may have on the draft regulations by 09 January 2012.