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What is RTI?

RTI stands for Real Time Information and is an initiative designed by HMRC which allows payroll managers to tell the Revenue about tax, National Insurance contributions (NICs) and other deductions when or before the payments are made, instead of waiting until after the end of the tax year.

It will therefore, the Revenue claims, make PAYE payments simpler, faster and with less chance of error by removing the need for a P35 and P14 (year end returns).

The systems has worked previously that an end of year return was filled out by the employer detailing deductions made for all employees and the Revenue checked it for errors. Now, no paperwork will be necessary and instead the company will submit a Full Payment Submission (FPS) online.