Now that the 31 January deadline has passed many practitioners will no doubt be breathing a sigh of relief. But in just under a months’ time, the biggest change to the UK PAYE system in many years comes into operation and it is important that practitioners take action now, if they haven't already done so.

Real Time Information means that from April 2013 employers will start sending PAYE information to HMRC in ‘real time’. This means it must be sent ‘on or before’ the date payment is made to an employee (or pensioner). This will have a number of implications for employers. Amongst others, it means:

• reporting will be integrated with payroll process;
• separate end of year PAYE return (forms P35 and P14) will not be required; and
• starter and leaver information will be reported as part of the routine reporting rather than separate submissions

HMRC have provided a useful checklist to help employers prepare including a list of actions to take before and after the change. A key action at this point is for employers to ensure their software is RTI compatible. Data cleansing is another key requirement and employers should check as soon as possible that they hold all the necessary information. Detailed guidance on RTI is available on the HMRC website.