Readers will be aware that from April 2013, employers are required to move to a new way of reporting PAYE. For the vast majority of employers, the first ‘real time’ return is the first employee payday since 6 April 2013.

Payroll software now needs to calculate PAYE and send the PAYE information to HMRC as part of a routine payroll operation.

Reporting PAYE does not change how or when people are paid, or when employers pay income tax and national insurance to HMRC. Instead of sending in the P14 and P35 forms at the end of year the employer (or agent, bookkeeper or payroll bureau) will:

• send a Full Payment Submission (FPS) each time, or before employees are paid
• send an Employer Payment Summary each month, showing any adjustments to the amounts owed
• send an Earlier Year Update to correct errors or make adjustments to earlier years. It's also worth noting that the FPS is not available through HMRC Online – RTI-enabled payroll software must be used to generate the return

For more help and advice about reporting in real time go to the HMRC website.