Despite teetering on the brink of overload and being forced to make several last minute changes, HMRC has proudly announced that its flagship Real Time Information (RTI) reform to the PAYE system has been a resounding success in its first month.

Over one million employer schemes have now adopted RTI, which is widely acknowledged as the biggest shake-up of the PAYE system in 70 years. Under the new system, annual PAYE reporting is replaced by payday reporting – from 6th April, employers have been required to report tax and NICs each time they pay their staff.

We previously reported that the changeover caused a logjam at the revenue, as numerous employers  – many believed to have been contractors – formed a stampede to register as eligible for annual payments. Notwithstanding the overload,  HMRC’s director general of personal taxation, Ruth Owen, said: “RTI is bringing PAYE into the 21st century, and it is amazing that we have reached the one million mark in less than a month. This is at the top end of our expectations. However, we’re not complacent and are carefully monitoring submissions, but so far things are going well.”

Ms Owen went on to reassure employers who have yet to make the transition that feedback from those who have switched to RTI already suggests they are finding it easy to use. She urged those who have not yet switched to do so urgently, adding: “All the help they need is on HMRC’s website.”

Umbrella Company Employees, of course, will already be familiar with the system, as their Umbrella Services automatically deduct tax and NICs on a PAYE basis.

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