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HMRC - Darren Warren


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HMRC - Darren Warren

  1. 1. PAYE RTI data ONS and Centre for Cities public policy forum on better data for devolution Darren Warren, October 2016
  2. 2. What is PAYE RTI • Real Time Information (RTI) for PAYE went live in April 2012 and was aimed at improving the operation of Pay As You Earn (PAYE). • Prior to RTI employers and pension providers sent information about pay, tax, National Insurance contributions (NICs) and other payroll deductions to HMRC after the end of each tax year. Under RTI, employers and pension providers tell HMRC about tax, NICs and other deductions every time they pay an employee. This results in a number of benefits: – It has made the PAYE process simpler and less burdensome for employers – It has made PAYE more accurate for individuals, over time reducing the number of bills and repayments sent after the end of the tax year – It provides us with an incredibly rich and timely dataset on employments
  3. 3. What information HMRC receives via RTI • Employers submit two types of submission • The Full Payment Submission (FPS) – This relates to employments and contains information relating to the employee, their pay and tax. • The Employer Payment Submission (EPS) – This contains scheme level information such as amounts of statutory payments recovered • After the tax year is closed employers are no longer able to submit an EPS or FPS to correct the end of year position but must send a cut down version of these submissions called an End of Year Update (EYU).
  4. 4. Information held on the FPS and EPSEmployer information - including o PAYE Reference o SA and Cotax references Employee information - including o NINO o Designatory information such as name, address and date of birth Pay and deductions- including o Taxable pay o Student loan deductions o Pay after statutory deductions (net pay) Pension deductions Statutory pay Benefits in kind taxed through payroll Employee starting and leaving declarations Employee Pay information - including o Tax code o Hours normally worked (banded) o Pay frequency o Payment date National insurance information – including o By NIC category letter o Earnings at the various NIC thresholds o Contributions payable o Additional NIC information relevant when paying a director Workplace pensions – including o Annual amount of occupational pension o Information on and amounts of lump sum payments
  5. 5. What information is NOT available from RTI • RTI only covers PAYE income from employment or pensions • RTI does not include other sources of income such as self employment, income from land and property or income from shares and dividends for example. • Therefore RTI is not a comprehensive source of information on personal incomes.
  6. 6. Any Questions?
  7. 7. Any Questions?