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HMRC PAYE update (RTI and Improving Data Quality)

HMRC have provided a further informal update on PAYE related matters for sharing. The update covers Real Time Information (RTI) and improving data quality.

Improving the operation of PAYE: Real Time Information (RTI)

We last updated you about RTI in July, when we published the RTI pages on the HMRC website. Since then we have been making good progress and are on track to deliver RTI on time.

Preparations for the pilot that starts in April 2012 are going well. The pilot is fully subscribed and in recent weeks we have held a number of events to prepare the volunteer employers for the pilot. We have also held a series of events for our staff. The IT for RTI is also on track - the IT test services released to date have been on time – with the final part of the EDI test service on track for next month. In addition we

Improving Data Quality

Analysis shows that over 80% of data quality problems are caused by incorrect information about individual’s name, date of birth or National Insurance Number (NINO). You may have seen some recent press coverage about some of the errors that we come across.

Before moving to RTI all employers will need to go through an alignment process. This is a one off process to make sure our records match with the employer’s to help avoid the time consuming ‘mismatch’ problems which have affected us all in the past. We are therefore asking employers to start to look at and correct their payroll data as this is an important part of preparing for RTI. Correctly recording information for new employees now will also help to make the transition to RTI easier for everyone. See Employer Bulletin 39

We are working with employers to reduce data ‘mismatches’. We have been piloting ‘Targeted Employer Support’ (TES) visits, which are producing encouraging results. We expect to start offering ‘TES’ more widely from November to those employers that experience the highest levels of data mismatches. We will also make the education materials developed through TES available for all employers through the HMRC website.


Technical Team

4 November 2011

 

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