PAYE Modernisation - What is Real Time Reporting (RTR)?
RTR stands for Real Time Reporting. It’s the first stage of the Revenue’s PAYE Modernisation project and is arguably the most significant change ever made to PAYE since it was introduced in the 1960’s. Set to come into effect on the 1 January 2019, this new and improved way of reporting will affect every employer and employee in the country.
What does it mean to me?
Essentially, what PAYE Modernisation will mean is that employers will be required to report pay, taxes deducted and any other deductions in respect of each employee every time they run their payroll, rather than just once a year at payroll year end via the P35. The traditional reporting structure that businesses use, such as P30, P35 and P45 will cease to exist.
For those with experience of UK payroll, it’s a similar concept to Real Time Information (RTI) where employers are obliged to file payroll returns electronically for each payroll run.
Why is RTR being introduced?
Having this real-time information will mean that the Revenue will be able to issue accurate and timely instructions to businesses, ensuring that an employee’s tax position at any time is correct resulting in less under or overpayments of tax.
What do I need to do?
Sage is working very closely with the Revenue to ensure your payroll service is fully compliant with all PAYE Modernisation requirements. When a new RTR related feature is fully tested and ready to go live, we’ll automatically apply it to your service – so you don’t need to do anything differently.
Sage PAYE Modernisation seminars
To help teach you all about how your software will change, we’re now taking bookings for our Real Time Reporting (RTR) virtual training. These sessions are hosted by an experienced payroll support technician, who will show you the new processes involved, and give you a look at how your Sage Business Cloud Payroll service will perform from January 2019. You can also ask any questions you may have about these new processes.
To book your place now, give us a call on 1890 88 20 40, or leave your details and we’ll get in touch.