What is RTI?
Definition of RTI
RTI is short for Real Time Information. Businesses use RTI to report wages, salaries, PAYE and National Insurance to HMRC.
Prior to April 2013, employers sent a form called a P35 to HMRC every year, showing who was employed by the business, how much was paid to them and how much went to HMRC in tax and NI. Instead, employers must now send this information to HMRC every time they pay staff, on or before the date the payment is actually made.
This is why it's called 'real time information' - because employers must send this information to HMRC 'in real time' when the staff are paid, instead of waiting until the end of the tax year.
FreeAgent automatically submits RTI to HMRC when you run your payroll.