Until October 2013, those with fewer than 50 employees get more time to report to HMRC
HMRC has today announced a relaxation of Real Time Information (RTI) reporting arrangements for small businesses in the first six months of the new system.
HMRC says: “Until 5 October 2013, employers with fewer than 50 employees, who find it difficult to report every payment to employees at the time of payment, may send information to HMRC on the date of their regular payroll run but no later than the end of the tax month (5th).”
RTI is a new system for PAYE reporting which is mandatory for most employers from 6 April 2013. (There are some very limited exceptions and the largest employers may have a later start date.) There have been concerns expressed by professional bodies and small business representatives that the requirement to report to HMRC “on or before” the employee is paid would be difficult and onerous for smaller businesses.
Commenting on this relaxation, Paul Aplin, chairman of the ICAEW Tax Faculty Technical Committee, said:
“The fact that ministers have listened to the concerns expressed by ICAEW Chartered Accountants and by small businesses is very encouraging. Today’s announcement provides a practical solution for many small employers who would otherwise have had to increase their reporting frequency from monthly to weekly or even more often. Over the next six months we will continue to work with government and HMRC to find permanent solutions to the challenges RTI will pose for employers.”