Responses to collection of Real Time InformationFriday, October 7th, 2011
HMRC summaries the responses to its consultation on the collection methods of RTI
In a document published on 30 September, HMRC has summarised the comments provided in 187 responses to the consultation document PAYE: Collecting Real Time Information that was issued in December 2010. The document also explains the various decisions that have been made as a result of the feedback, although many of the decisions have already been announced and included in our newsletters.
The key decisions made by HMRC that result from the consultation are:
- Due to technical concerns expressed by developers and by the banks, the BACS channel for submission of RTI will continue to be a long-term objective but the existing Electronic Data Interchange (EDI) channel will be developed and used at least until April 2014. Therefore, from April 2012, the two RTI channels will be EDI and the Government Gateway Internet channel.
- When the BACS channel has been implemented, HMRC will continue to provide an alternative Internet channel for the use of employers that do not use BACS.
- The requirement to report the number of hours worked by employees in the RTI file is replaced by a requirement to report hours in bands of normal weekly hours worked, broadly reflecting the current Tax Credit legislation, i.e. up to 15.99 hours, 16 to 29.99 hours, 30 hours or more, and “Other” where the categories do not apply, such as pension payments.
- The requirement to provide employees’ passport numbers is changed so that the passport number will only be required where it is collected as part of a pre-employment check for a new employee who does not provide an NI number when asked.
- The requirement to provide details of holiday pay is replaced by a requirement to provide information on the number of pay periods covered by the payment.
- The requirement for payroll systems to be developed and tested for them to be in place by April 2012 was replaced by a 12-month pilot exercise starting April 2012, consisting of volunteer software developers and volunteer employers who use the developers’ RTI-enabled products. It is hoped to expand the number of employers joining RTI during 2012/13 to volume-test systems and employers invited to take part will do so on a voluntary self-serve basis. Subject to a successful pilot, HMRC will still start to mandate the use of RTI from April 2013, with all employers required to use RTI by October 2013.