What does the acronym RTI mean? Is this something that I should concern myself with?
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RTI is the new acronym for Real Time Information, which is a major part of HMRC’s consultation ‘Improving the Operation of PAYE’. PAYE was introduced in 1944 and the basic concept has remained largely unchanged since that time. Fluctuating work patterns, employments and earnings, together with significantly improved electronic communication tools, meant that the original system needed to be changed.
The principle of RTI is actually a simple one – rather than submitting an annual P35 / P14 return to HMRC, this information will be submitted before, or at the time the net pay payment is made to the employee, i.e. the information is exchanged between employer and HMRC in real-time. Replace the word ‘employer’ with ‘payroll department’ and you will see that ‘Yes’, this is something that all payroll professionals will want to concern themselves with – concern as in make themselves aware of rather than worry about.
