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HMRC publishes RTI End of Year impact report

October 16, 2013


HMRC has today published a report into the burden of End of Year processes under RTI on a group of pilot employers. The report, ‘PAYE Real Time Information Pilot End of Year Customer Experience Research’, aimed to discover what benefits or problems were experienced by the pilot employers as they completed year end submissions using RTI reports and how the experience compared with the traditional PAYE end of year process.

A sample of 756 pilot employers was used in the research, with 28 of these being interviewed to provide qualitative feedback on the EOY reporting burden under RTI.

The report investigated employer perceptions of the burden of EOY processes under RTI, including the cost, time and amount of work required in order to complete end of year reporting.  Most employers found that the level of difficulty involved in EOY reporting under RTI was the same or easier than they had expected and 53% of employers expected that the experience would be the same next year.

79% of the employers surveyed did have to seek support at EOY, with technical difficulties being the most common reason for doing so at 46%.   Of those 79%, there was a fairly even split between those who sought help from HMRC at 54% and those who contacted their software provider at 45%.  Only 6% of employers sought assistance from an accountant or payroll bureau when completing end of year submissions.  The research found that for SMEs a payroll software provider was most likely to be the first port of call when seeking support.

Those more likely than average to contact HMRC for reasons of a technical difficulty were users of Basic PAYE Tools at 62%.  The technical difficulties experienced were the main reason for employers feeling that the burden of the end of year process had increased.  Those who did seek support from HMRC primarily used the telephone in order to access it.

The cost of RTI end of year processes was unclear, as researchers found that pilot employers had commonly received free upgrades from their payroll software companies.  The experience of these employers is also not likely to be representative of all employers because all pilot employers were already using RTI software.  Most employers (69%) felt that the cost of RTI EOY processes was no different to the traditional process.

HMRC’s original business case for RTI relied on the scrapping of the end of year (P35) reporting process to deliver savings to UK business of some £300m.

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