TAX - 11.11.2011

Preparing for RTI

Update. The Taxman is currently asking companies to review their payroll records to make sure personal information for their employees is correct, e.g. full names (should Bob really be Robert?), NI numbers etc. This will be vital for the new real-time information (RTI) system.

Tie-up. Under RTI the Taxman will collect PAYE due on your workers’ wages directly from your company’s bank account and allocate it to their tax records. Unless the information you have ties up with the Taxman’s, there’s a risk that tax will and NI might not be allocated correctly. There’s no rush: you have a couple of years to get it right as RTI won’t start until 2014. But there’ll no doubt be other things to sort out along the way so you might as well make a start now.