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RTI Compliance

Ensuring compliance for RTI

Employers will be required to start submission of Real Time Information (RTI) from April 2013 onwards. But what needs to happen between now and then?

In this article Simon Parsons explains Ceridian’s plans for RTI within the Ceridian Electronic Exchange service.

Following careful consideration of views expressed in response to consultation, HMRC announced changes to the initial proposals for piloting RTI and the customer migration plan set out in the consultation document.

HMRC also announced that, to allow sufficient time to develop the longer term strategic solution of using the Bacs channel, the existing HMRC filing channels (the internet – through the Government Gateway – and EDI (Electronic Data Interchange)) will initially be used to submit RTI data. These changes respond to the views of those who participated in the consultation. They will reduce risk and help to ensure that RTI is delivered on time.

Ceridian will be undertaking all development requirements for HMRC RTI from now and into the summer of 2012 in readiness for live application at the commencement live point of April 2013.

The following aspects of HMRC RTI will form part of the Ceridian Electronic Exchange Service:

• FPS (Full Payment Submission)
• EYU (End of Year Update)
• NINO Verification
• P6. P6B, P9 (tax codes), SL1 & SL2 (student loan) notifications (as now)

A one off EAS (Employer Alignment Submission) activity will also form a part of the value add service. The EAS submission may require a manual file combination handling especially where a PAYE scheme has multiple splits in the payroll operation. This submission is required prior to live implementation of HMRC RTI for all employers with over 250 employees, and for any employer that operates their payroll in parts or splits.

Once a client is live on Ceridian Electronic Exchange with HMRC RTI, then the automated submission of P45, P46, P14 will stop (no longer applicable).

Ceridian Electronic Exchange offers an outsourced automated exchange of both in-year and end of year data with HMRC. Updates received from HMRC are automatically applied to user payrolls where the individual identity is matched, or bring to the attention of the user where an HMRC instruction cannot be directly aligned with employer data. The Ceridian Electronic Exchange service currently utilises EDI using Generic Flat File (GFF) formats with some alternate use of the internet for adhoc messaging. Ceridian reserves the right to change or enhance solutions to other acceptable interchange methods either wholly or partly such as XML or BACStel-IP when the long term strategic HMRC proposal is progressed.

Other elements of HMRC RTI which generally relate to employer interactions for payments etc. do not form part of the core Ceridian Electronic Exchange service but may be undertaken either directly by the employer with HMRC or where contracted to do so, by Ceridian using the HMRC online service via the Government Gateway – providing an overarching solution which caters for all aspects of the HMRC RTI requirements.

For background information on RTI see RTI – Starting to get real