Real Time Information doesn’t change the way you calculate PAYE; it just means you’ll need to make more regular submissions. RTI was introduced in 2013.
Each time you pay your employees, you’ll need to submit PAYE information to HMRC, rather than just once a year at payroll year end.
Following concerns over the impact of RTI on small businesses, rules of reporting were temporarily relaxed.
But from October 2014 those relaxed rules were lifted and small businesses need to start reporting each time they pay their employees – not just on a monthly basis.
You’ll still need to process PAYE in the same way but you’ll need to submit the payroll information to HMRC on or before the day you pay each of your employees.