What you need to do now

In our first two eshots we explained what Real Time Information (RTI) is, gave you the dates for HMRC's rollout and explained how HMRC expects RTI to work. We also introduced the new terms 'full payment submission' (FPS) and 'employer alignment submission' (EAS). You can find our first eshot, Real Time Information – what is it and are you prepared, here, and our second, Real Time Information – how will it work, here.

This time we are looking at what you should be doing now.

To ensure your first EAS and FPS are successful it is essential that you review your key employee data. The quality of the employee information that HMRC holds and processes is crucial to the successful introduction of RTI.

Payroll alignment is an important process that all employers and pension providers will need to undergo. It will ensure HMRC holds the same employee details as you before you start to send them your PAYE information in real time. To do this, you will have to provide details of all employees who have been on the payroll since 5 April 2013 – even if they have not been paid in the relevant period or have since left the payroll.

We recommend you start to prepare by checking, and where necessary correcting, the details you hold for each employee, in particular:

  • national insurance number
  • full name (it is very important that you make sure that you have the correct (official) first name and not just the name that the employee happens to be known by. You should also check you have their name in the right order)
  • date of birth.

What next?

In our next eshot, we will provide you with more information about changes to PAYE forms. We will be delivering RTI workshops in Bristol on 3 October and in Southampton on 23 October. At both workshops we will have a guest speaker from HMRC.

Top tips

It is vital that your records are up to date. Click here for more information from HMRC on data quality. There is more information about payroll alignment on HMRC's website here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.