Real Time Information (RTI) & Centralised Deductions (CD)

RTI is to be implemented for most employers from April 2013. Instead of employers just paying PAYE & National Insurance on the 19th of the month and filing an annual PAYE Return (P35), employers will now have to return details of employees pay and PAYE/NIC deductions to HMRC EVERY TIME they pay them, so for weekly employees EVERY week. This will cost more in administration time or payroll charges if payroll agents are used. And if returns are late, there will be stiff penalties. April 2013 will be the biggest change in PAYE that most people will have seen in their lifetimes. If the government go ahead with CD, it will border on “1984”.