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E8.815 Real Time Information (RTI)

To improve the operation of PAYE, and to support the introduction of universal credit, HMRC introduced a system that collects information on PAYE deductions each time an employee is paid. Real Time Information (RTI, see E4.1104) is a system under which an RTI employer¹ electronically sends HMRC details of an employee's pay and deductions for tax, National Insurance, Statutory Payments and student loan deductions together with the payee's identity at the time that the employee is paid. Under the system HMRC will be able, in due course, to amend tax codes to reflect in-year changes in a timely fashion. It also simplifies the process when an employee joins and leaves and the year-end reporting requirements.

To facilitate the introduction of RTI for NICs purposes, existing regulations were amended, notably to deal with the way that employers report information under the PAYE system to HMRC about the payments made to employees and the Class 1 contributions in relation to those payments, and to make provision in respect of the recovery of Class 1 and