HMRC have contacted us with an update on RTI which HMRC is introducing to PAYE from April 2013. The vast majority of employers are required to start submitting PAYE returns in real time in April 2013 and all employers will be routinely reporting PAYE information in real time by October 2013.

As part of HMRC's communications strategy prior to the 1 April deadline, HMRC are engaging with representative bodies, including Chartered Accountants Ireland, to communicate key messages to employers.

From April, PAYE returns are required each time a payment is made, electronically as part of routine payroll processes. Employers operating their own payroll will need to consider and take the appropriate action to either update their payroll software or obtain new payroll software or, where an agent or payroll bureaux is used, discuss the changes with their payroll service provider. Employee data should be reviewed and cleansed and employers need to consider any changes that might be required to internal processes so that they can operate RTI from April next year.

This month HMRC will be writing to all employers telling them about RTI, advising what they should be doing to get their business ready for the changes to PAYE in April 2013 and signposting HMRC guidance. Chartered Accountants Ireland will be regularly updating its members prior to the change.