Get Ready to Operate PAYE in real time

At the moment PAYE information although processed on a monthly basis is reported only once a year on an Employers Annual return online via forms P14 and P35. Under real time reporting, employers and pension providers or agents or payroll service providers will send HMRC information about tax, NICs, student loans etc. each time they pay their employees. This will enable HMRC to keep more accurate records and it should cut down on tax inconsistencies. HMRC are continuing to run a pilot scheme with selected employers and will be extending this into the New Year. They will be sending information out to employers this October as there are things you need to do to prepare for the changes in terms of updating PAYE software and information gathering to ensure a smooth transition.