Real Time Information (RTI) Customer User Group by 2CxzIx


									Real Time Information (RTI)
Customer User Group

24nd June, 2011
Real Time Information | Agenda

                 Agenda Item                      Delivered by    Timing

Welcome and introductions                       Stephen Banyard   25 mins

Introduction to RTI and current state of play    Peter Hopkins    25 mins

RTI Pilot and Customer Migration                  Tony Locock     25 mins

Customer Insight ideas                           Caroline Smith   20 mins

Customer Involvement                             Peter Hopkins    20 mins

A.O. B                                          Stephen Banyard
  Introduction and current state of play

Peter Hopkins
  Real Time Information | PAYE Journey

1944 PAYE Introduced -                                              2012 RTI – pilot and
paper based, deductions                                             Large employers
in-year, with details of          2009 NPS - one                    submitting PAYE data
deductions reported EOY           database with                     in real time
                                  individuals records
                                  rather than employers

   1940        1950      1960   1970     1980      1990      2000       2010      2020

          1983 BROCs and                                              2013 RTI – All
          COP -                                                       employers
                                       2005-2011 MPPC &
          computerisation of                                          submitting PAYE
                                       Carter – submitting
          HMRC existing                                               data in real time
                                       data electronically
          processes                                                   Tax Credits and
                                                                      Universal Credit
Real Time Information | Background

Why Real Time Information?

•   Better for individuals;
          • Fewer and smaller under and overpayments after the end of the tax year -
            especially those with multiple jobs and/or pensions or who change
            employment often
          • Better quality and more frequent data will mean fewer tax credits
•   Better for employers;
          • Reporting is integrated with payroll processes removing costly end of year
            process and simplifying the process for starting and leaving employment
•   Better for the Exchequer
          • More efficient PAYE processes and cleaner data enable better debt
            management processes
•   Supports Universal Credit
Real Time Information | Consultation

•   Majority support Real Time Information

•   Main concerns centred on timeline and agreeing the technical specification
    for the Bacs channel

•   In particular, software developers told us
    •   They could not update their entire product range by April 2012; but that
    •   Could develop selected products by April 2012
Real Time Information | Channels

•   HMRC made an announcement on Friday 13th May that as a transitional
    arrangement we will support RTI reporting through the existing EDI and
    Government Gateway channels.

•   We are extending the timetable for the development of RTI reporting through
    Bacs and we will publish more information about the revised timetable for the
    Bacs channel later in the year.

•   These changes do not affect the overall timetable
Real Time Information | Bacs Channel

Bacs remains HMRC’s strategic Channel

Why Bacs?

•   Information sent with the payment instruction is likely to produce the most
    accurate information
•   It is secure
    •   It is part of the critical national infrastructure and is regulated by the Cabinet Office

    •   It is capable of handling the peak payroll processing volumes

    •   It reuses PKI security key
Real Time Information | EDI and Internet Solution where
earnings paid by direct Bacs



                 RTI Data with #

                                                          # created by

               Employer                   Bacs

                          RTI reference
                            in field 7
Real Time Information | Timeline

•   The Technical Pack for the Government Gateway was published on the 13th
•   The EDI Technical pack will be available by the end of June, 11
•   The Bacs Technical pack will be produced in due course once the timelines
    have been agreed.
•   October 2011 onwards – test services available
•   October 2011 – October 2013 work with employers to ensure data quality
•   April 2012 – October 2012 software developer and employer pilot (with further
    early adopters joining throughout 2012 – 13)
•   April 2013 – employers mandated to report using the new RTI system
•   October 2013 – all employers reporting under RTI
              RTI Pilot

Tony Locock
RTI Approach

 April 11                    Oct 11              April 12              Oct 12             April 13            Oct 13

Software Development Pilot Products                    Pilot including early adoption           Main Migration

                             Software Development All Products

                                                            Data Improvement

            Test services available   HMRC Launches Pilot     HMRC Decision Point   HMRC Decision        Universal Credit

            for Developers                                    Early Adopters        Go-Live              Go- Live
Real Time Information | Pilot

•   April – June 2011 identification of software developer products and employers
    for pilot
    •   Aim to bring on board flagship payroll products, with large number of users

    •   Developers nominate employers for pilot

    •   HMRC select employers based on pre-determined criteria – ensuring
        representative sample
•   Software developers and employers participating in pilot will be supported
    (e.g. bespoke guidance, workshops for each planned for July 2011 and
    January/February 2012 and named contacts throughout pilot phase)
•   October 2012 (assuming successful pilot) more volunteer employers using
    tested products move to RTI
•   Key review points October 2012 and early 2013 before compulsory reporting
              Employer Migration

Tony Locock
 Real Time Information | Customer Migration

                                customer migration
    Migrate 99% of large
    employers by Aug                                            Select pilot/early
    2013                                                        adopter customers

                            Migration of approx.
Migrate Medium              1.5m, (13k) large (43k)
and Small                   medium and (1.3m)                    Supporting
employers (99% &            small employer                       customers through
97%) complete               schemes to RTI regime                pilot and early
October 2013                by October 2013                      adoption process

  data alignment
                           Support                    Evaluate pilot,
                           customers through          learn lessons,
                           main migration.
                 Customer Insight

Caroline Smith
110624 Caroline Smith
RTI: Customer Evidence & Insight. Workstream Overview
                    Employers                          Individual PAYE
                                                                                           Tax Credit customers

                                                                                                    HMRC staff will also be
                                              To be included in research & analysis plan            included via consultation/
We have taken a 3 stage approach to designing this workstream:

 1) Identifying key questions &                                                                     3) Drafting a tailored
 information gaps in relation to:                  2) Overlaying these questions
                                                                                                    plan of specific research
 Behaviour Change                                  against:                                         projects to aid decision
 •What do we need and/or want customers            •Existing customer evidence &                    making across RTI
 to actually do?                                   insight                                          programme:
 •How can we best achieve this?                    •Existing forums, relationships &
 Awareness                                         consultation                                     Policy
 •How do we make customers aware?
 When?                                                                       Payroll
                                                       Banks                                        Design & Delivery
 •What are the core messages?                                               Bureaux
 •Which ‘messenger’/who should deliver                Software
 them?                                                                    Other Agents              Customer Migration
 •Through what channel and/or products?
 Impact                                                                                             Data Improvement
 •How will the Customer Journey(s)                 •Liaison with DWP
 change?                                           •HMRC sources of knowledge and                   Communications
 •What is the admin burden (£ and                  expertise
 resource)? And the transitional costs? For        •Practical constraints of timings &              Business Case
 customers and HMRC?                               budget

110624 Caroline Smith
Employer Research – the first project
                                                                                    Draft timeline
  Qualitative – exploring via          Quantitative – measuring via                 •Commission & set up: May/June
  •Focus groups                        •c. 750 telephone interviews                 •Qual: June/July
  •Depth interviews                                                                 •Quant: July/Sept.

Overview of specific objectives for this project:
explore and quantify customer reaction to RTI, such as: awareness & source of awareness, perceived advantages
& disadvantages - for short, medium & long term, impact on perceptions of HMRC
implications of RTI on:
       paying tax & NI due to HMRC - how do employers currently pay and how might this change?
       employees – can they foresee any issues from point of view of employees? Is RTI likely to lead to increased
       queries? If so, who to (HMRC, employer, other) and how should this best be managed?
       frequency of running payroll
Customer Migration
identify the decision making process around early adoption and/or mandation & identify the barriers and levers
estimate likely take up volumes of RTI in the period from October 2012 to October 2013 and how we can
encourage early adoption
Data Improvement
gauge customer reactions to various options of how to work with HMRC to align data
explore root causes of key data matching issues: NINO, name & date of birth
Programme Management
estimate transitional costs and ongoing day to day costs of RTI and/or benefits for customers at each stage of RTI
– from data alignment, preparation, going live to ongoing business as usual
explore and quantify likely problems for small and/or niche employers
determine requirement for on-line exemptions – what exemptions in place and would these be required for RTI?
estimate impact on contact with HMRC

            Involving stakeholders

Peter Hopkins
Real Time Information

                                 RTI Customer User

                 HMRC Employer, Software, Agent, and Individuals
                            consultative forums

     Software developers       Intermediaries          Trade Associations
       Payroll bureaux        HMRC; DWP and                 Charities
                              other Government               media
         Tax agents

   Software      Payroll       Large        Medium          Small
  Developers                                                            Carers
                Bureaux      employers     employers      employers
Real Time Information

Thank you

To top