HM Revenue and Customs said that RTI will make it easier for employers, pension providers and themselves to administer PAYE. Under RTI, employers and pension providers will tell HMRC about PAYE payments at the time they are made – as opposed to only at the end of the year.
Most employers will join RTI from April 2013 and all employers will be using the RTI service by October 2013.
David Gauke, Exchequer Secretary, said: “RTI will ensure that the PAYE system meets the needs of the 21st century. It will improve the service to taxpayers by making it easier to ensure that people pay the right tax after a change of job.
“HMRC is committed to a smooth and on-time transition. The start of the pilot demonstrates that RTI is on track.
”RTI will remove administrative burdens of £300 million a year from employers, mainly from the abolition of the end-of-year PAYE returns process – the biggest single contribution that any tax change could make.”
Confirming that HMRC is one of the 10 volunteer employers to join the controlled go live, Stephen Banyard, Acting Director General for Personal Tax, said: “We have been working in close partnership with stakeholders to ensure that RTI will be introduced progressively, to give time for testing the new systems and processes and allowing them to bed in.
“The pilot will allow us to iron out any wrinkles in a small, controlled environment so that we can ensure RTI is working smoothly as more and more employers join the pilot. We are working closely with employers and the payroll industry but having HMRC take part in the pilot will allow us to see first-hand how it is working from an employer’s perspective.
“A specialist team of RTI experts will be on hand to support employers through the pilot.”
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Susie Hughes © Shout99 2012