Contractor News Roundup: July 2020
Since the latest method of reporting PAYE came into place just six weeks ago, HMRC have found that over one million PAYE schemes have started to use the new system.
According to HM Revenue and Customs, RTI (Real Time Information) will result in making the whole PAYE process much simpler by making it easier to ensure that people are paying the correct amount of tax after changing jobs, removing the need to submit certain year-end forms, and making the end of year reconciliation process much easier for both employers and HMRC.
Employee details, such as NICs and tax, are now submitted on the day that they paid, rather than at the end of each financial year.
Real Time Information has been so far proven to be a resounding success, with over one million employer PAYE schemes having started to report PAYE in RTI since it was launched April 6th.
Ruth Owen, HMRC’s Director General Personal Tax, explains, “RTI is bringing PAYE into the 21st century, and it is amazing that we have reached the one million mark in less than a month. This is at the top end of our expectations. However, we’re not complacent and are carefully monitoring submissions, but so far things are going well.
“We have had lots of feedback from many employers saying that RTI is easy to use. We know it will take time before all employers adapt to RTI, but any who haven’t started reporting in real time should do so quickly. All the help they need is on HMRC’s website.”
Please visit our Contractor News hub for all other news.
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