RTI post-implementation review
LITRG were among those asked to submit comments to HMRC to inform their review of how the implementation of RTI (Real-Time Information) had gone. RTI is the system whereby employers and pension providers are required to notify HMRC electronically of any payments they make to employees or pensioners, on or before making payment.
Our response focused on the importance of RTI functionality working well for the benefit of individual employees, particularly those who claim universal credit. We considered what groups of employers should continue to be exempt from electronic filing, and cautioned against placing too much reliance upon RTI data in checking tax credit claims. Finally, we asked HMRC to ensure that the lessons they draw from implementing RTI are fully taken into account in the next big project on the horizon, Making Tax Digital (or MTD).
LITRG’s comments can be found here.