PAYE compliance and RTI
PAYE compliance and RTI

The following Tax practice note provides comprehensive and up to date legal information covering:

  • PAYE compliance and RTI
  • RTI reporting
  • Commencement of RTI and first return
  • Monthly compliance
  • RTI and monthly compliance
  • In-year compliance
  • P45
  • P46
  • P46(Car)
  • Annual compliance
  • More...

PAYE compliance and RTI

Coronavirus (COVID-19): in light of the coronavirus crisis, the government announced the Coronavirus Job Retention Scheme (CJRS) to support the employed. For more detail, see Practice Notes: Coronavirus Job Retention Scheme (original version to 30 June 2020) and Coronavirus Job Retention Scheme (revised version 1 July to 31 October 2020). HMRC has published guidance on how to report payments of wages made to employees under the CJRS for RTI purposes.

The Pay As You Earn (PAYE) system relies on an array of reporting requirements, forms and compliance. Employers are required to report employee remuneration on both a monthly and an annual basis. In addition there are various in-year reporting requirements, such as for joiners, leavers and the provision of certain benefits.

Real time information (RTI) has applied to all employers and pension providers since October 2013. It replaced many of the previous rules associated with PAYE reporting and compliance.

This Practice Note provides an overview of the main compliance requirements associated with PAYE, and explains how these have been affected by RTI.

RTI reporting

Historically, the PAYE system posed a problem (for HMRC, and potentially for taxpayers too) in that HMRC did not know how much should have been collected from employees under PAYE until after the end of the relevant tax year. This was because employers only had to tell HMRC once per year (on

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