Newcastle University

Real Time Information (RTI) is the biggest change to the PAYE taxation system for many years.  It is being introduced by Her Majesty’s Revenue and Customs (HMRC) over the next year in preparation for the introduction of the Universal Credits – a major change to the benefit system.  All employers will have to comply with RTI; the University and its payroll systems provider, SAP, are early implementers. 

Under RTI, an RTI report is submitted to HMRC with every monthly payroll submission to the Banks Automated Clearing System (BACS).  The data in this report replaces the data that is currently submitted just once at the end of every tax year.  HMRC will match the data from our RTI report to records they hold; one of the benefits to this change is that HMRC can assess individual PAYE so that the correct amount of tax is paid at the right time rather than adjustments being made in the following tax year. Further information is available from HMRC.

Before going live with RTI, employers have to submit an Employer Alignment Submission (EAS), designed to ensure that the first RTI file will match HMRC records. The EAS consists of FULL NAME, NI Number, Date of Birth and Gender. It is the Full Official Name that is required, i.e. that which would appear on official documents eg passport or Birth Certificate.  Employers submitting inaccurate information may be penalised and it may well lead to incorrect tax codes and benefits being applied to the individuals concerned.

New Forms

All the forms used in creating Payroll or HR records have been reviewed to ensure they encourage capture of the accurate and complete data that is now required – especially the full official name of the individual.  The opportunity has also been taken to simplify and reduce the number of variations of these forms that are in circulation.  The new forms are being introduced in advance of the RTI go-live so that there is time to drive out old versions of the forms.  The new forms have been marked with a reference in the top left corner, marked (01/2012) (RTI) so they are easy to identify.  The new forms are now available to download from the HR, Payroll and Finance websites and should be used with immediate effect.  Old versions of the forms will continue to be accepted for the February payroll run but should not be used thereafter.  They will cease to be accepted after the March payroll run.

It is likely that some forms will need to be amended later in the year when feedback has been received from HMRC or to meet the new requirements set by HESA and Pensions Auto-Enrolment.

Fees Form

There is one form that is completely new on the Finance website – a form to request payment of a one-off fee to a current, regular employee of the University (Fees and Associated Expenses Claim Form for Regular Staff).  Any such payments must now be requested on this form rather than the previous.  Payments will be subject to careful consideration.

Less Flexibility

Our Payroll team will have less flexibility under the RTI regime; there will be more work required to, for example, retrieve an over-payment or to make someone a leaver after the event.  It will therefore be more important that Payroll are notified of any changes to pay or contracts before the payroll deadline for the month in which the change takes effect (usually 12th of the month). 

Employees responsibility for notifying HMRC and Benefits Agency of changes to personal circumstances

The smooth operation of the new RTI and Universal Credits system also requires that employees notify HMRC and the Benefits Agency of changes to their personal circumstances.  Guidance on this, and the information required by the University, including the special requirements for migrant workers, is available.