UK firms not ready for real-time HR reporting

Employee Benefits reports.

The research found that almost a fifth (18%) of respondents were not aware of the upcoming RTI deadlines and the likely impact of the change.

Under RTI, employers will need to submit payroll data to HM Revenue and Customs (HMRC) electronically on a real-time basis each time a payment is made (monthly, in most cases), as opposed to the current system where data is returned annually.

According to In Audit, the RTI payroll reporting is being phased in on a trial basis from April this year, with all other employers required to comply on a phased entry basis from April to October 2013.

The rationale for its introduction is to improve the operation of PAYE and to help support the introduction of Universal Credits.

However, with average lead times to prepare for RTI and the simultaneous requirement to auto-enrol all employees into a pension arrangement of between 12 and 16 months, KPMG is warning that some businesses are running a risk of leaving it too late.