Real Time Information (RTI) is a priority Government programme aimed at improving the operation of Pay As You Earn (PAYE). It will make the system better for individuals and easier for employers and HM Revenue & Customs (HMRC) to operate. It also supports the introduction of Universal Credits.
Currently, employers and pension providers send information about tax, National Insurance contributions (NICs) and other payroll deductions to HMRC after the end of each tax year. The result is that HMRC cannot correct mistakes until the employer sends this information.
However, under RTI, employers and pension providers will tell HMRC about tax, NICs and other deductions when or before the payments are made.
RTI will:
Employers and pension providers will send this information to HMRC Online.
On this page:
HMRC currently envisage that all employers and pension providers will have joined the RTI system by October 2013. To make sure that the service is thoroughly tested and issues are resolved, HMRC will pilot the RTI service with volunteer software developers and employers for a year, starting in April 2012.
HMRC also envisage that most employers and pension providers that haven't joined the RTI system during 2012-13 will do so in April 2013, and that RTI will be routinely operating by no later than October 2013. HMRC will notify all employers and pension providers about their obligations in due course.
HMRC has consulted extensively on collecting RTI. The results of the initial consultation can be found by following the links at the bottom of this page.
HMRC will continue to work closely with employers, payroll providers and the software and banking industries over the coming months and throughout the pilot period to help ensure that the process of sending information under the RTI system is as easy as possible.
Answers to some frequently asked questions for employers
including:
Technical Note 14 November 2011: proposal to abolish the P45/P46 forms
HMRC update regarding retention of P45 (Opens new window)
More employers wanted to join RTI pilot (Opens new window)
RTI Pilot to go ahead in April 2012 (Opens new window)
News about RTI reporting channels
Guidance on generating the RTI cross reference (RTI hash) (updated 22 July 2011) (PDF 23K)
Summary of Responses: Improving the operation of PAYE: Collecting Real Time Information
Discussion document on Improving the operation of Pay As You Earn (PAYE) July 2010
Consultation document on collecting real time information
Information about Welfare Reform from the Department for Work and Pensions (Opens new window)
