HMRC is urging employers that have failed to follow the new real time information (RTI) process to urgently get their act together.

The plea is targeted at 167,000 employers that have already missed one or more deadlines for reporting PAYE who have been sent a letter by the taxman urging them to do so immediately.

HMRC says 1.6m employer PAYE schemes, covering over 40m individual records, are now reporting under RTI following the launch of the new reporting requirements in April.

Despite a bumpy introduction with various last-minute changes to RTI including reporting for the smallest businesses and problems with the penalties system, the majority of PAYE employers are now on board.

Ruth Owen, HMRC's director general for personal tax, said; 'Over 85% of employers are now reporting PAYE in real time but our records show that 167,000 employers have yet to send us a PAYE submission. Reporting PAYE in real time makes it easier for employers to pay HMRC the right amount and avoid late payments and penalties.

'If agents have set up, on behalf of their clients, PAYE schemes that have never been used - or their clients' PAYE schemes have now ceased - they should call HMRC to close the scheme.'

HMRC adds that employers need to act now and start reporting in real time. If employers have not reported because they don't pay anyone, the PAYE scheme has closed or it is no longer operating, they still need to let HMRC know by calling its Employer Helpline.