What is RTI BACS?
RTI BACS, or direct BACS, refers to a business submitting its payment instructions directly to the BACS network, using a bank sponsored Service User Number or ‘SUN’.
If the payment doesn’t use a BACS Service User Number, it isn’t direct BACS. And only direct BACS supports RTI hashing, linking payments with payroll software.
Confusion can arise because “BACS” is widely used to refer to electronic payments, in particular internet banking transactions.
What’s different about direct BACS is that a SUN precisely identifies the business or employer and so the PAYE scheme, allowing HMRC to identify and link PAYE reporting with actual net payments to employees.
And direct BACS supports multiple payment references - including RTI hash codes – where internet banking only supports a single payment reference.