Road Ltd’s recently appointed bookkeeper understands that the company must report PAYE information to HM Revenue and Customs in real time. However, the bookkeeper does not know how PAYE real time reporting works in practice, having previously only produced payroll manually.

Road Ltd pays its employees at the end of each calendar month, with some employees receiving taxable benefits.

Required:
Explain how and when Road Ltd will have to report real time PAYE information to HM Revenue and Customs, and state what forms, if any, will have to be provided to employees or submitted to HM Revenue and Customs following the end of the tax year. (3 marks)