Skip to Content
author's profile photo Former Member
Former Member

UK Payroll

Hi,

Has anybody got any information on Real Time Information (RTI) which needs to be implemented by all companies in the U.K who use SAP payroll?

Thanks

Punnet

Add a comment
10|10000 characters needed characters exceeded

Related questions

4 Answers

  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Oct 12, 2012 at 04:09 AM

    SAP Payroll Real Time Information - RTI

    Significant changes to the way payment details are communicated to HMRC

    Real Time Information (RTI) is a priority government program aimed at improving the operation of PAYE. It will make the system better for individuals and easier for employers and HM Revenue & Customs (HMRC) to operate.

    The current system has been in existence since 1948 so the changes proposed are very radical and mean a restructure of how all payments and deductions (i.e. Tax, National Insurance (NI), Sick Pay etc.) are reported to HMRC.

    Under the new system, all employers will have to report employee tax and NI details along with other information, to HMRC on a pay period by pay period basis, instead of just once a year at the end of the tax year. The Year End process will become simpler as it is likely that only employee P60s will need to be processed.

    The data reported each pay period will include statutory payment / deduction data and data relating to Starters and Leavers in a single file. This means that the current In Year Movements (IYMV) process will no longer be required.

    The channel for transmission and reporting of this data will be via BACS and the new file format will contain both the net pay data for making the deposits into employee's bank accounts, together with the statutory data for HMRC. The BACS communication will be two-way, with the Acceptance/Rejection reports coming back to the employers through BACS.

    The new RTI systems will:

    • make the PAYE process simpler for employers and HMRC
    • enable HMRC to deal with late payments more effectively
    • support the payment of Universal Credits
    • make PAYE more accurate for individuals, reducing the number of bills and repayments sent after the end of the tax year
    • reduce Tax Credits error and fraud

    Interim Solution

    In response to concerns from the software and banking industries about the timescales for developing the ISO standards for use in the BACS channel, HMRC will also accept RTI data through Electronic Data Interchange (EDI) until at least April 2014 in addition to the internet channel.

    In April 2013 there will be two methods of reporting:

    • Internet through the Government Gateway.
    • Electronic Data Interchange (EDI). EDI for RTI will be available until at least 2014.

    Future BACS Solution

    BACS is the HMRC’s strategic solution for RTI reporting and they are actively working with the banking and software industries to develop a service which will enable RTI reporting through BACS. This would enable employers who pay their employees through BACS to report RTI automatically at the time electronic payments are made to their employees.

    Why BACS?

    • 90%+ employees paid via BACS
    • Links & corroborates payment & associated information
    • Validates payment & linked data
    • Single channel for payment instructions & PAYE information

    Timescales

    HMRC will pilot the RTI service, with volunteer software developers and employers for a year, starting in April 2012. Any adjustments identified during testing will be made in Autumn 2012.

    Employers and pension providers must use the RTI service from April 2013. All employers will be using the RTI service by October 2013.

    The SAP Solution

    SAPs proposed solution will deliver a new program based on the EOY report to support Tax reference based submission. This will enable the submission of an XML file via the government gateway. PI will be used for people on ECC6.0 and above. For system versions ECC5.0 and below, Business Connector will be used.

    Additional Information

    We will regularly update this page with more information as it becomes available but the following links may also be useful:-

    http://www.hmrc.gov.uk/rti/employerfaqs.htm

    http://www.hmrc.gov.uk/rti/news/30June2011-employers.htm

    http://www.hmrc.gov.uk/softwaredevelopers/rti/improving-rti.htm

    http://www.hmrc.gov.uk/softwaredevelopers/rti/internet-rti.htm

    http://www.hmrc.gov.uk/softwaredevelopers/rti/index.htm

    Sushilkumar.M

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Oct 11, 2012 at 09:40 PM
    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Oct 18, 2012 at 07:21 AM

    Dear Expert

    RTI configuration guide

    Kindly confirm that provided document is authentic

    http://www.sd-solutions.com/RTIUserguideMay.pdf

    Thanks

    Nadir

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Oct 18, 2012 at 07:28 AM

    As a UK Payroll customer you should of been contacted by SAP. They have held SAP User Group Meetings over the last few months about this very subject. There is lots of information on the SAP User Group Website about this. If you dont have access, I would follow the notes as supplied, but you need to work with your BACS provider, its been reported by some SAP customers that their BACS Software provider are charging quite a lot of money for the change...

    You need to plan with HMRC when you want to go live with RTI.

    There are also some other legal changes, that I hope you are looking at implementing also, like Auto Enrolment, it would be beneficial for your company to join the SAP User Group.

    Gary

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.