Why RTI is still causing payroll headaches – and what you can do about it

If you have found yourself tearing your hair out over PAYE discrepancies or HM Revenue & Customs (HMRC) queries that seem to go nowhere, you are not alone.

Real-Time Information (RTI) reporting was introduced by HMRC in 2013 to modernise payroll and make tax processing more efficient.

While it largely succeeded in digitising PAYE, it has not been without its problems, problems that are still being felt over a decade on.

So what is going wrong, and more importantly, what can you do to protect your business from the fallout?

The problem with RTI

Under RTI, payroll information must be submitted to HMRC every time employees are paid, usually weekly or monthly.

This includes earnings, tax, National Insurance and other deductions. In theory, this gives HMRC up-to-date information and reduces the risk of errors.

Hoowever, recent findings from the Chartered Institute of Payroll Professionals (CIPP) have shown that the reality can be much messier.

Their 2024 report highlights multiple systemic issues, including:

• Employers receiving incorrect PAYE charges with little explanation
• Limited visibility over what HMRC holds compared to what businesses have submitted
• Long-standing disputes – with some unresolved for more than two years
• HMRC agents unwilling or unable to assist due to internal pressures

With the upcoming expansion of RTI to include real-time reporting of Benefits in Kind (BIK) by 2026, concerns are growing about whether the current system is fit for purpose.

What this means for your business

When RTI data goes wrong, the consequences can be frustrating and expensive.

Incorrect tax liabilities, wasted admin time, and unresolved queries can put a real strain on your team, especially if you are trying to sort issues with little feedback from HMRC.

Inaccurate payroll reporting can also put your business at risk of compliance issues or penalties, even when the mistake is not your fault.

How our payroll team can help

Working with our experienced payroll team means:

• Your RTI submissions are accurate, timely and compliant
• Discrepancies can be identified early before they spiral into long-term problems
• You will have experts on hand to chase HMRC and resolve issues efficiently
• You can stay ahead of the curve as changes like benefit reporting come into force

We take care of the technical side of payroll, so you can focus on running your business.

If you are tired of battling RTI errors or want to futureproof your payroll processes, contact our team today.