Firms need to report every time they pay staff

Employers will be required to move to a new way of reporting PAYE in real time, sometimes called Real Time Information (RTI).

David Gauke, Exchequer Secretary to the Treasury, said: “For employees, particularly the one million people in the UK with multiple jobs, RTI will bring benefits as HMRC starts to get details of their tax every time their wages are paid, rather than just once a year.

“This will make HMRC’s records more accurate and up-to-date and will reduce the number of cases where someone is found to have under or overpaid tax during the year.

“RTI will deliver the new Employment Allowance, which will reduce the cost of taking on new staff for small business.

“RTI will make it simple to administer, to ensure maximum take-up and help aspiring businesses grow by hiring employees or expanding their workforce.

“Real Time Information will be better for employers and employees. It will bring PAYE into the 21st century.”