Micro employers given PAYE Real Time Information boost
13th December 2013 | News
HM Revenue and Customs (HMRC) has announced that existing employers with nine or fewer employees, who require more time to adapt to the PAYE Real Time Information (RTI) system, can submit PAYE data on or before the last payday in the tax month up until April 2016.
More than 99 per cent of PAYE records are now said to be successfully using RTI with the vast majority of employers finding the new PAYE reporting system straightforward.
However, HMRC rightly recognises the fact that some micro employers may need more time to adjust. They now have a further two years to adapt their processes in readiness to begin reporting in real time by April 2016.
HMRC will be encouraging micro businesses to adapt their processes as soon as possible however, and to improve efficiencies and productivity they have provided a package designed to help micro employers move towards RTI reporting.
The package includes:
Improved guidance, including best practice scenarios where employers will not have to report PAYE information ‘on or before’ the time they pay their employee
Ongoing work with the software industry to harness technology in an effort to develop new ways to report PAYE information on or before the date they pay their employees – such as the use of mobile apps.
Jo Nockels, training and communications manager, at TaxAssist Accountants, said: "The extension to the relaxation is excellent news for micro employers, as it minimises their payroll processing time. Small businesses are still riding this economic storm out, so we welcome anything that can be done to ease the burden on them.
"But I do warn business owners not to become accustomed to the concession. Employers should still be working towards meeting the full reporting requirements ahead of 2016, to ensure they are ready for the withdrawal of the easement."