RTI update

HMRC have published their post implementation review of RTI. LITRG were pleased to input to this review and there are findings and recommendations within the subsequent report that care and support employers may find interesting.

The Real Time Information (RTI) programme implemented the biggest change to Pay As You Earn (PAYE) since 1944. RTI is the system whereby employers and pension providers are required to notify HMRC electronically of any payments they make to employees or those receiving pension payments on or before making payment.

LITRG were among those asked to submit comments to HMRC to inform their review of how the implementation of RTI had gone. LITRG’s input into HMRC’s review of RTI can be found on the LITRG website.

HMRC have now published their post implementation review of RTI which addresses the questions of whether the programme achieved what it set out to do, how RTI is performing more than three years after it started and what needs to be done to improve performance and make best use of this strategic asset for government.

The full report can be accessed here – Real Time Information programme – post implementation review report.

Of interest are the references to and action points around smaller employers including:

‘HMRC acknowledge that its communications and guidance are not reaching all employers, with some small businesses struggling to understand their reporting obligations and the consequences of failing to meet them. In response, HMRC has committed to thinking more innovatively about how best to reach smaller employers and give them the clarity they need, not just in RTI, but across all of its transformation plans.

HMRC state that they are creating a plan to monitor progress made against each of the recommendations and that they will share that plan with their main stakeholder groups – we shall keep you updated.