31 May 2012

At the CIPP National Forum in Newcastle yesterday, HMRC were talking to members about Real Time Information (RTI) and releasedthe welcome news that EDI (Electronic Data Interchange) will be permitted until 2016/17.

For some time now the policy team have been concerned that if HMRC were to implement their Strategic Solution for RTI i.e. submissions to be sent down the Bacs channel and Internet rather than EDI, then software developers need to know yesterday.

As you will know HMRC announced the interim solution which is to allow EDI and Internet until at least 2014 and this has now been extended to 2016/17. HMRC has not however confirmed if this is an extension, or whether this means their original Strategic Solution is under review?

The Policy team will be monitoring future developments and will of course seek feedback from our industry if and when appropriate.

HMRC press release reads:

Update on use of Electronic Data Interchange for sending PAYE information in Real Time

Last year, we published our technical pack which explained that, as a transitional arrangement, employers would be able to send Real Time Information (RTI) to HMRC using Electronic Data Interchange (EDI) at least until April 2014 as well as the Internet channel (which we plan to retain long term).

We now envisage that we will retain EDI until at least 2016-17.

This will allow employers and the banking and software industries time to implement the interim RTI solution; and for HMRC to learn from the RTI pilot and consider and understand the benefits of a longer-term RTI solution.

We will publish more information and update the RTI web pages, in due course.

The introduction of RTI is not affected. The RTI pilot, which includes reporting by EDI and internet via Government Gateway, began as planned on 11th April 2012 with a controlled go-live as part of the 12 month RTI pilot. The pilot will help us learn and iron out any wrinkles before most employers and pension providers start to use the RTI service in April 2013, with RTI routinely operating by October 2013.

The interim solution requires employers to include a cross reference (hash) in their RTI submissions and Bacs payment instructions where payment of earnings is via Bacs, using the employer’s own Service User Number (SUN).

HMRC does not require employers and pension providers to adopt payment of income via Bacs either for the interim solution or longer term.