As part of AccountingWEB’s investigation into real time information, Nick Huber looks into the technology that drives HMRC’s PAYE reporting processes.
The introduction of real time reporting (RTI) was intended to simplify HMRC’s fragmented PAYE computer systems. This would reduce tax-code errors and support the universal credit, which has been delayed, by linking the tax and benefit systems.
After 70 years of operation, PAYE was a creaky process that relied on annual reconciliations. Under RTI, employers send information about tax and national insurance they deduct from employees’ wages to the Revenue when they are made. With these “real time” updates already in place, laborious annual reconciliations should no longer be needed.
After nearly a year of operation, however, accountants and employers are still complaining that RTI is producing duplicated employee records and other payroll data errors it was supposed to eradicate.
As part of AccountingWEB’s ongoing review of RTI we asked, is the technology to blame?
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