In the UK, Her Majesties Revenues and Customs (our tax and revenue service) continues to modernise. This year’s major leap forward is the adoption of a real time data exchange system known as RTI – Real Time Information.
In a nutshell, rather than report what you have paid your employees via your payroll system after the event, you must inform HMRC on or before the day you pay them. That’s right, HMRC want to know exactly how much you are paying who at the same time, or before, the person themself even knows. An element of ‘big brother’ perhaps. A data, communications and cultural challenge most definitely.
Software developed by Sage is used to pay one-in-four employees in the UK – a phenomenal figure by any standards. As such the focus given over to RTI, as you would expect, has been significant. As a result, all of these employees who are paid using software from Sage, and all of their employers, can relax knowing that RTI is taken care of. Sage software products have been exchanging RTI data with HMRC for some time now – this is an essential step for becoming HMRC-recognised software.
If you want to use Sage Payroll software which is RTI ready, click here.
If you also want to use integrated Sage Accounting and Cash Management, click here.