What is RTI?
Since 6 April 2013 employers are required to start reporting PAYE information to HMRC in real time – Real Time Information (RTI)
This means that employers will have to send details to HMRC electronically every time they pay an employee as part of their routine payroll process.
HMRC is introducing RTI in order to modernise the Pay As You Earn (PAYE) system and keep pace with changes to modern working patterns. RTI provides HMRC with up to date information, so it should be easier to ensure deductions for tax, National Insurance and student loans are accurate.
What is changing with RTI?
The way PAYE is calculated, employees paid and payments made to HMRC is not changing.
The main difference will be how and when payroll information is reported to HMRC. Instead of sending information to HMRC once a year (via a 'P35' and 'P14s') RTI returns must be made each time employees are paid. For Crunch clients this means every month.
There is also no longer a requirement to file starter or leaver forms ('P45' and 'P46') to HMRC as this information will be included as part of a regular RTI submission.
How will RTI work in Crunch?
Crunch will submit your RTI returns to HMRC as soon as you save a payroll run - that's it. For more information on how to add a payroll click here.