Operating PAYE in real time (Real Time Information or RTI) means employers and pension providers will tell HM Revenue and Customs (HMRC) about PAYE payments at the time they are made as part of their payroll process. Payroll software will collect the necessary information and send it to HMRC online.
You will submit information about PAYE payments throughout the year as part of your payroll process, rather than at the end of the year as you do now.
Operating PAYE in real time only affects the submission of PAYE information - payment arrangements will remain unchanged.
Most employers will be legally required to report payroll information in real time from April 2013, with all employers doing so before October 2013. HMRC will tell you the date you should start sending your PAYE information in real time - you cannot send any real time information reports until this date as they will be rejected.
Further information on improving the operation of PAYE can be found by following the link below.