What's New with RTI? Changes Coming on 6th April 2025

Some exciting news for employers and payroll professionals! Starting April 6th 2025, there will be some important updates to the Real Time Information system in the UK.

These changes are designed to make payroll reporting smoother, more accurate, and more efficient, sounding good so far?.

Let’s just look into what’s happening and how you can get ready.

What is RTI?

Real Time Information (RTI) is the system used by HM Revenue and Customs (HMRC) to manage PAYE (Pay As You Earn). Instead of reporting payroll details once a year through the year end process, employers send information to HMRC every time they pay their employees. This helps ensure everyone pays the right amount of tax and keeps things up-to-date.

Key Changes from April 6, 2025

More Detailed Reporting

You’ll need to include more information in your payroll submissions:

• Employee Hours: Report the hours worked each pay period in specific bands.
• Payment Details: Specify when and how often employees are paid.
• Benefits in Kind: Report non-cash benefits as they occur to keep tax calculations accurate.

Simplified Reporting for Small Businesses

Good news for small businesses with fewer than 10 employees! You’ll have easier options:

• Annual Reporting: Some PAYE elements can be reported annually instead of in real-time which is great news.
• Extended Deadlines: Extra time for submitting certain information, reducing the rush.

Going Digital

Payroll and API.

• Payroll Software: All employers must use HMRC-recognized payroll software.
• API Integration: Improved APIs will make data transfers between your payroll system and HMRC smoother and more reliable process.

Penalties and Compliance

To help everyone stay on track, HMRC is tightening up on penalties:

• Tiered Penalties: Changes to Fines, you wont be surprised these will be based on the size of your business and how serious the non-compliance is.
• Instant Notifications: Real-time alerts for any issues, so you can fix them right away (Good news hey)

How to Get Ready

1. Update Your Payroll Systems

Make sure your payroll software is up-to-date and ready for the new RTI requirements. Check with your provider for any updates and training.

2. Train Your Payroll Teams

Get your payroll and HR staff familiar with the changes. Consider holding training sessions or workshops to get everyone up to speed.

3. Review Your Internal Payroll Processes

Take a look at your current payroll processes and see where you might need to make adjustments. Update employee records, refine data collection methods, and ensure you’re ready for the changes.

4. Stay Connected with HMRC

Keep an eye on HMRC updates and guidance. Attend webinars or consultations, and don’t hesitate to ask questions if you’re unsure about anything that could derail your operations.

Stewarts’ Conclusion

The RTI changes coming on April 6, 2025, are all about making payroll more efficient and accurate. By updating reporting requirements, simplifying things for small businesses, and leveraging digital tools, its all good stuff, these changes will benefit everyone involved. Start preparing now to ensure a smooth transition and stay compliant with HMRC.

Embrace these updates as a step forward in the world of payroll. With the right preparation, you’ll navigate these changes with ease and set your business up for success.

Is your payroll team getting ready for these change?