Pay As You Earn (PAYE) is changing, and all UK employers will be required to notify HMRC of the details of payments to employees at the time or before they pay them. HMRC are calling this Real Time Information (RTI). Payroll software will collect the necessary information and send it to HMRC via the Government Gateway. This is the largest change to PAYE since its introduction in 1944, and is being introduced to enable the Government’s to introduce the Universal Credit in October of this year.
Although the change is introduced from 6th April 2013, employers with fewer than 50 employees, which will include the vast majority of churches, have been given until 5th October to start sending their information in real time. Until then, they can send information to HMRC by the end of their regular payroll run – provided it is no later than the end of the tax month on the fifth.
A guide to the changes is available on this website by clicking here, along with lots of links through to HMRC’s guidance.