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RTI Pilot begins – HMRC’s “Tax Revolution” launches

April 11, 2012

The initial volunteer employers, which include HMRC itself, represent the initial stage of the pilot which is due to expand in May and June 2012 when a further 300 employers are set to join. A second phase of the pilot anticipates an additional 1,300 volunteer employers reporting RTI by September 2012, with a third and final phase of the pilot due to start from November 2012: By March 2013 HMRC anticipates around 250,000 employers will be reporting RTI on a voluntary basis.

RTI becomes mandatory for most employers from April 2013, with all employers reporting RTI by October 2013. HMRC is mandating all small and medium sized employers to join RTI in April 2013 so they start to operate RTI from the beginning of the new tax year. Larger employers will be free to agree with HMRC when they come into RTI, ahead of the October 2013 deadline.

The initial pilot stage provides for volunteer employers to be supported closely by HMRC throughout the process.

Confirming that HMRC is one of the 10 volunteer employers to join the pilot, Stephen Banyard, Acting Director General for Personal Tax, at HMRC said:

“We have been working …. to ensure that RTI will be introduced progressively, to give time for testing the new systems and processes and allowing them to bed in. The pilot will allow us to iron out any wrinkles in a small, controlled environment so that we can ensure RTI is working smoothly as more and more employers join the pilot.”

Mr Banyard also explained how HMRC had been” working in close partnership with stakeholders”, in particular UK payroll software providers on which HMRC’s Interim Solution for reporting RTI via payroll software relies. SAGE the financial accounting and payroll provider, which has a 70% share of the UK payroll software market, is considered to be a key HMRC RTI partner.

Mr Banyard’s retirement from HMRC in the summer of 2012 means he will not be responsible for the project when RTI reporting becomes a legal obligation for employers in April 2013.

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