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HMRC: RTI has cut time spent on PAYE 5 February 2014

Real Time Information (RTI) has reduced the time and cost spent on running payroll for most employers, according to HMRC research.

Telephone interviews in November last year carried out by the Revenue, found the mean average time spent on PAYE was now lower because of RTI, by an hour – from 2.6 hours to 1.6.

Seven out of 10 (72%) employers said that reporting in real time had “reduced or made no difference to the cost of running payroll”.

A further Three quarters (77%) of those questioned considered the on or before submission deadline requirement was “easy” to comply with, while 12% found it difficult.

An additional qualitative study undertaken by HMRC shortly after revealed four main downsides to RTI.

These included the need for mandatory nil returns, being unable to correct errors without re-submitting Final Payment Submissions (FPS), difficult timing of submission deadlines and the cost of RTI software.

The HMRC report states: “On the whole, employers have found it easy or easier than expected to migrate to RTI and most are confident that they are doing what is required under RTI.

RTI is successfully encouraging compliance with paying HMRC promptly and with notifying HMRC of changes to employee circumstances.”

The Payroll World Spring Update conference on March 20, will have a session by Alastair Kendrick, tax director at MacIntyre Hudson on how to best handle an HMRC audit - including dealing with penalties, in the light of RTI. For more info and to book your place click here.

What is you experience? Has RTI reduced time spent on PAYE. Find out what other payroll professionals think here

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