What's changed - PAYE in real time

Unless HM Revenue & Customs (HMRC) has already notified you, all employers must report PAYE in real time. Each time you pay an employee you must submit details about employees' pay and deductions to HMRC using payroll software.

This guide gives an overview of the main changes.

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Common forms you no longer need

Some of the main forms you will be familiar with are no longer used for operating PAYE in real time.

The table below gives an 'at a glance' comparison of the changes. Payroll software will include most of these new forms. You can find out more about each new online form as you need it.

Reporting PAYE before 6 April 2013

Reporting in real time now

Forms P14 and P35 end-of-year returns - do not use after you have submitted your 2012-13 return

FPS each time you pay employees
Employer Payment Summary (EPS) each month for any adjustments to what you owe
Earlier Year Update (EYU) to amend details for earlier years

P45 - don't send any parts to HMRC - only use for the employee's own records after 6 April 2013

Include starters and leavers information on your FPS

P46, P46(Pen) or P46(Expat) - do not use these forms after 6 April 2013

Include starters and leavers on your FPS. You can use the Starter Checklist to keep your own record

Form CA6855 to trace or check a National Insurance number - do not use after 6 April 2013

Use payroll software to send a National Insurance number Verification Request (NVR) to trace or check a National Insurance number

Form P38(S) - do not use after 6 April 2013

Include on your payroll and in your FPS

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Changes to PAYE Online for real time reporting

Employers reporting their payroll information to HMRC in real time use fewer features of PAYE Online than they did previously - you still submit reports online but these reports will be sent directly to HMRC using your payroll software or HMRC's Basic PAYE Tools.

You still need your PAYE Online login (User id and password) because although you can't log in directly to PAYE Online to report, you need your login details when your payroll software sends your reports through the Government Gateway, which uses the same password and user id as PAYE Online does.  

Reports that cannot be submitted directly using PAYE Online

You cannot send HMRC any of these reports by logging in directly using PAYE Online:

  • an FPS
  • an EPS
  • an Employer Alignment Submission (EAS)
  • an EYU
  • an NVR
  • New employee information - you mustn't send P45 Part 3, P46, P46 (Pen) or P46 (Expat) directly using PAYE Online, even if this option is still visible from the left hand menu
  • Leaver information - your payroll software will send this - so don't use PAYE Online to send P45 Part 1
  • End-of-year return - forms P35, P14 and P38A for years 2013-14 onward

You can continue to login directly to PAYE Online to:

  • send expenses and benefits returns - including P46 (Car), P9D, P11D and P11D(b) - although this may be done directly from your payroll software if it supports this feature
  • receive tax codes and notices, although you may choose to view these using the PDV, or your payroll software if supported
  • set up email reminders, and also view your current tax position
  • view National Insurance number verification requests and replies - how you can do this is explained later in this guide
  • view generic notification notices - you can find out more about these notices in the guide 'Using HMRC’s Online Service - PAYE for employers'
  • appeal electronically against your 2014-15 late filing or late payment penalty

Using HMRC's Online Service - PAYE for employers

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Getting your employee details ready

It's very important you use accurate employee details - such as full name, home address, date of birth, National Insurance number and gender - when you report your PAYE information in real time. By doing this you will:

  • ensure employees pay the correct Income Tax and NICs
  • make it easier to match the information you send with HMRC's record of your employee
  • reduce the number of employee queries you receive from HMRC

The best way to check these details are correct is to verify them against a birth certificate, passport, driving licence or official document from HMRC or the Department for Work and Pensions.

Improving your payroll data

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