HMRC has called the introduction of real time information (RTI) reporting the biggest change to the PAYE payroll system in more than 60 years. Since October 2013, all employers are required to report to HMRC every time they make a payment to employees.

With such a dramatic change, it is not surprising that there have been some teething problems since the bulk of employers moved over in April 2013, despite an overall positive start for HMRC. However, there have also been some more fundamental problems, which will need to be addressed before a penalty system is introduced in 2014.

So what has happened? And how have businesses and advisers been affected?