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RTI will be here in April 2013 Some employers are still unaware of changes they will have to make in 2013 in order to comply with HMRC Real Time Information. Under RTI, employers and pension providers or their agents will submit information about tax, national insurance contributions, student loans and other deductions, on each pay date, instead of at the end of the tax year. This information will be used by the Department for Work and Pensions as the basis for calculating the new Universal Credit benefit from October 2013. HMRC’s pilot scheme during 2012 was considered a success but concerns remain that many employers still haven’t realised the extent of the changes they are required to make. In the main, the larger employers are putting plans in place, or at least thinking about it. But many small and medium-sized businesses are likely to be blissfully unaware of this radical change. Employers who have up to date HR/payroll software, hold current and accurate employee data and their software provider is gearing up for real-time reporting then they may find that the transition is smooth. But if not, they are likely to face significant problems complying and may incur penalties. Almost all UK employers should have received a letter from the HMRC outlining the key changes to PAYE reporting.

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