RTI

How much do you think the proposed new system will cost you?

The Real Time Information system, to support the new Universal Credit which will go live from October 2013, will require you to provide real time information to HMRC about individual employee’s situations, including how much tax is being deducted from each salary payment.

HMRC published on 15 March a Tax Information and Impact Note covering Real Time Information (RTI): improving the operation of PAYE (TIIN)

It contains an estimate of compliance costs, but the figures do not look very realistic to us. 

According to HMRC the 'one-off transitional compliance costs' (see fifth page of the TIIN) are as follows:

‘…the need to check and amend data held about existing employees, estimated as £35 million (on average around £20 per PAYE scheme);…

…training and familiarising staff with the new processes, estimated as £85 million (on average around £50 per PAYE scheme)