From April 2013 almost all employers and pension providers will be required to implement Real Time Information (RTI), which will radically change payroll procedures for all businesses.

Described as one of the most fundamental changes to payroll reporting requirements in the past five decades, RTI will require all employers to start providing employee PAYE, National Insurance and Student Loan information to HMRC on or before every pay day, rather than at year-end as currently.

RTI will be phased in starting with the largest companies, with the smallest having to operate PAYE in real time from April 2013.