RTI approaching

As we've talked about before on the blog, from April HMRC will introduce big changes to the way payroll information is reported. The good news is FreeAgent has it covered and we wanted to give you a further update on our progress.

Real Time Information (RTI) comes into effect from April 2013, and will mean big changes to the way businesses report information to HMRC regarding payment of their employees.

Traditionally, PAYE data would be submitted at the end of the tax year, but the new changes will require data to be submitted to HMRC online whenever employees are paid.

For FreeAgent users this means we’re completely overhauling our existing payroll system, improving our underlying engine and properly supporting student loans. Finally, we’ll enable Real-Time Information (RTI) filing of payroll data directly to HMRC.

How will it work?

The actual workflow of payroll will change a fair bit, and you’ll see the first changes released in the next month or so. We’ll support this change with plenty of helpful information on the knowledge base, so you’ll be well prepared for the April switchover. For now we've put together a quick primer on the scope of our new Payroll functionality.

In the meantime, if all this talk of government legislation and initiatives has got you excited (get help now btw) then you can find out more about RTI in this no-expense-spared video by the HMRC or on their website.

Finally, if you haven’t registered for a Government Gateway ID or PAYE Online then you'll need to do this to file RTI.

Until next time,
Roan and the team at FreeAgent