CIPP guide to RTI: Your first submission | AccountingWEB

CIPP guide to RTI: Your first submission

Over the last couple of years there have been many articles written about Real Time Information (RTI), from concept through to consultation and on in to detailed articles about when it will come in and how we should prepare, explains the CIPP’s Helen Hargreaves.

With the countdown now at around six weeks before the vast majority of employers embark on their RTI adventure the CIPP thought it was time to tell you how you would practically deal with common situations which occur in day to day payroll.

Over the next two months we will outline various scenarios and explain how to report them in RTI.

Let’s start right at the very beginning…

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  • When to send your first submission
  • What to do if the amount shown on the FPS differs from the payment you have sent to HMRC
  • Ending the tax year in real time


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Constantly Confused's picture

Has anyone seen this letter yet?    2 thanks

Constantly Confused | | Permalink

Most employers will now have received a letter from HMRC telling them to start operating PAYE in real time from 6 April.

100+ payroll clients, not a single one will confess to having seen this letter yet...

Randify's picture

A few

Randify | | Permalink

@Constantly Confused We have had a few ring up / email asking what to do........

Constantly Confused's picture


Constantly Confused | | Permalink

Randify wrote:

@Constantly Confused We have had a few ring up / email asking what to do........

Lucky you!  Ours must be at the bottom of the mailing list... :(

Euan MacLennan's picture

RTI204 & RTI205C

Euan MacLennan | | Permalink

The letters that we and some of our clients admitted to receiving were RTI204 letters dated 8th October 2012.  They were just printed on plain white paper.

The current RTI205C letter that we and our clients have been receiving has a big red label saying "Real time PAYE starts in April - act now!" printed on it and is dated 16th February 2013.  It is this letter which includes as standard the following two paragraphs:

"Our records show that you have a history of missing or taking a long time to make PAYE payments to us.  Reporting PAYE in real time will tell HMRC how much you should pay each month.  This will make it easier for you to pay us the right amount each time and help you to avoid making late payments and incurring penalties.

As reporting PAYE in real time happens as part of your routine payroll process, you should expect to see a reduction in time spent in administration."

Needless to say, we and the clients have always paid on time - something which we have confirmed on the HMRC website which, rather oddly, displays as the date of receipt 3 days earlier than the 22nd or 21st or 20th on which we have set up the DD payment.  The second paragraph is the one which prompts payroll clients to say "So, you will be reducing your fees, then!".

PAYE/NI Payments under RTI

TC2 | | Permalink

Under RTI, will an employer be able to set up a DD and have the correct amount of PAYE/NI taken at the correct time by HMRC automatically once the relevant FPS/EPS Returns have been done (as you can with a VAT Return/payment now)?

I can't find anything that says this can happen, but it is the one thing about RTI that would make life EASIER.

re: direct debits

gg | | Permalink

This has been raised with HMRC on a number of occasions now and their response is that there are no plans at the moment to introduce a direct debit system for the collection of PAYE/NI.

However, once RTI is bedded in then this position could change.

Duplicate Final Submission for the tax year

ABooty | | Permalink

We are a 'One-Man Band' and, to keep tax/NIC as simple as possible we try to make a single salary payment towards the end of the tax year - December onwards, say. Under RTI we do this and make the Final Submission declaration. So far, OK.

If we decide - for whatever reason - to make another salary payment before 5th April what happens then? Can 'The System' handle it? What steps do we take?