HM Revenue & Customs has introduced a new way of reporting PAYE called Real Time Information or RTI.
By law, employers now have to submit information about all PAYE payments to HMRC online every time a payment is made as part of their payroll, whether weekly or monthly, rather than at the end of the year, as was the case (although HMRC has announced a "relaxation of reporting arrangements for small businesses").
According to HMRC: "Until 5 October 2013*, employers with fewer than 50 employees, who find it difficult to report every payment to employees at the time of payment, may send information to HMRC by the date of their regular payroll run but no later than the end of the tax month (5th)."
*HMRC have recently announced that they have extended the deadline until 6 March 2015.
You can find out more about RTI below:
This free whitepaper from Sage looks at how you can prepare your business for RTI and highlights the importance of data accuracy.