This means that in future each payment of salary only needs to be included on a real time information (RTI) report once. Secondary legislation will be introduced to amend the rules.

Under the current rules advance payments are treated as a payment on account of earnings. This means that employers must submit additional RTI reports to record these advance payments.

This creates extra administrative burdens for both employers and HMRC because it requires employers to submit additional RTI returns.

Additional returns also impact on HMRC processes, increasing the risk of PAYE coding or Universal credit errors.