Real time information: 'iXBRL on steroids'
The imminent arrival of real time information (RTI) for PAYE is causing a degree of unease and debate in the marketplace.
Described by IRIS Accountancy Solutions managing director Phill Robinson as “iXBRL on steroids”, RTI starts in earnest from next April. While HMRC says its RTI pilot scheme is going very well and is inviting more and more employers to join the scheme early, numerous commentators are raising the alarm about widespread ignorance and lack of preparation for the big migration.
Sage attracted a lot of attention with a survey that showed revealed a majority of small and medium sized enterprises are not prepared for the introduction of RTI, and very few see the benefits that it will bring. Only 64% of the 1,000 businesses questioned were aware of RTI and just 10% thought that it would have a positive effect on their firm. In contrast, 43% of respondents thought the changes would increase rather than lessen their administrative burdens.
More recently, tax bodies went public with concerns that there was a risk that HMRC would use the new regime as an opportunity to increase its revenues from penalties for non-compliance. To allay these fears, they called on HMRC to defer levying penalties for a year to give RTI time to bed in.
Drawing on both camps, this article will lay the groundwork for the final push to RTI and offer suggestions for those still struggling to come to terms with it as well as those in the know. In the weeks to come, AccountingWEB will follow up with general “how to” articles, advice for practitioners about the opportunities RTI could present for their firms, and for finance and payroll managers about how to prepare their systems and teams for the RTI regime.
The full article includes further information on:
- What is RTI
- What to do next
- What needs to happen before you go live with RTI.
- Expert guide: The nuts and bolts of RTI
- Real Time Information: What you need to know
- AccountingWEB RTI coverage
- HMRC RTI homepage
- HMRC FAQs
- HMRC Data Quality homepage
- HMRC RTI webinar - how payroll alignment works.
- Software vendor info: Advanced Business Solutions, Keytime, Pegasus, Qtac, QuickBooks, Sage