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Real Time Information | Agenda. . Introduction and current state of play. Peter Hopkins. . . . . . Real Time Information | PAYE Journey. 1944 PAYE Introduced -paper based, deductions in-year, with details of deductions reported EOY. . 1983 BROCs and COP -computerisation of HMRC existing processes. .
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1. Real Time Information (RTI)Customer User Group 24nd June, 2011
2. Real Time Information | Agenda
3. Introduction and current state of play Peter Hopkins
5. Real Time Information | Background Why Real Time Information?
Better for individuals;
Fewer and smaller under and overpayments after the end of the tax year - especially those with multiple jobs and/or pensions or who change employment often
Better quality and more frequent data will mean fewer tax credits overpayments
Better for employers;
Reporting is integrated with payroll processes removing costly end of year process and simplifying the process for starting and leaving employment
Better for the Exchequer
More efficient PAYE processes and cleaner data enable better debt management processes
Supports Universal Credit
6. Real Time Information | Consultation
Majority support Real Time Information
Main concerns centred on timeline and agreeing the technical specification for the Bacs channel
In particular, software developers told us
They could not update their entire product range by April 2012; but that
Could develop selected products by April 2012
7. Real Time Information | Channels
HMRC made an announcement on Friday 13th May that as a transitional arrangement we will support RTI reporting through the existing EDI and Government Gateway channels.
We are extending the timetable for the development of RTI reporting through Bacs and we will publish more information about the revised timetable for the Bacs channel later in the year.
These changes do not affect the overall timetable
8. Real Time Information | Bacs Channel Bacs remains HMRCs strategic Channel
Why Bacs?
Information sent with the payment instruction is likely to produce the most accurate information
It is secure
It is part of the critical national infrastructure and is regulated by the Cabinet Office
It is capable of handling the peak payroll processing volumes
It reuses PKI security key
10. Real Time Information | Timeline The Technical Pack for the Government Gateway was published on the 13th May
The EDI Technical pack will be available by the end of June, 11
The Bacs Technical pack will be produced in due course once the timelines have been agreed.
October 2011 onwards test services available
October 2011 October 2013 work with employers to ensure data quality
April 2012 October 2012 software developer and employer pilot (with further early adopters joining throughout 2012 13)
April 2013 employers mandated to report using the new RTI system
October 2013 all employers reporting under RTI
11. RTI Pilot Tony Locock
12. RTI Approach
13. Real Time Information | Pilot
April June 2011 identification of software developer products and employers for pilot
Aim to bring on board flagship payroll products, with large number of users
Developers nominate employers for pilot
HMRC select employers based on pre-determined criteria ensuring representative sample
Software developers and employers participating in pilot will be supported (e.g. bespoke guidance, workshops for each planned for July 2011 and January/February 2012 and named contacts throughout pilot phase)
October 2012 (assuming successful pilot) more volunteer employers using tested products move to RTI
Key review points October 2012 and early 2013 before compulsory reporting begins
15. Employer Migration Tony Locock
16. Real Time Information | Customer Migration
17. Customer Insight Caroline Smith
18. 110624 Caroline SmithRTI: Customer Evidence & Insight. Workstream Overview
19. 110624 Caroline Smith Employer Research the first project
20. Involving stakeholders Peter Hopkins
21. Real Time Information
22. Real Time Information
Thank you