An advertising campaign about an overhaul of the PAYE system that has major implications for employers has been launched by HM Revenue and Customs (HMRC).
The new PAYE reporting system, known as Real Time Information (RTI), will be introduced from April 2013, with employers reporting each time they pay their employees, rather than yearly.
HMRC claims it will reduce administrative burdens for employers by around £300m a year.
Ruth Owen, HMRC’s director general personal tax, said: “Winston Churchill was Prime Minister when PAYE was introduced. Little has changed in the system in about 70 years and it no longer fits the needs of a modern workforce.
“Now is the time for employers to act, including ensuring all employee information is correct and up to date. All the information they need is on our website.
“RTI will improve the operation of PAYE for employers, HMRC and employees. Feedback from employers in the pilot is that reporting PAYE in real time is easy.”
A range of RTI software is available, including free software for micro businesses with nine or fewer employees.
More information on RTI can be found at hmrc.gov.uk/rti
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