RTI Benefits

RTI is a system introduced by HMRC to improve the operation of PAYE. The RTI functionality helps collect PAYE information more regularly and efficiently when employers submit their regular payroll submissions.

The following are some of the benefits:

• As a part of RTI, employers and pension providers report all earnings and deductions made to an individual at the time payment is made to the individual, instead of reporting these figures only at the end of the tax year.

• RTI reporting is an integral part of the normal payroll activity. When employers run their payroll calculations, the payroll software gathers the information required and reports it to HMRC.

• RTI supports Universal Credits by simplifying and streamlining benefits into one payment. RTI provides the Department of Work and Pensions (DWP) with up to date information about a claimant’s employment income enabling them to calculate Universal Credits payments without the need for claimants to supply employment or pension income information.

• RTI also removes the need to submit P35s and P14s at year end and simplifies the employee new starter and leaver processes.

• RTI helps HMRC to respond more efficiently to errors, improves the accuracy of employee PAYE data, and enables efficient collection of outstanding PAYE and National Insurance Contributions (NIC) liabilities from employers.