RTI could push firms over the edge, expert says
16th January 2013 | NewsThe introduction of Real Time Information (RTI) - a new method of reporting PAYE information - could push struggling firms "over the edge".
That is according to Julie Palmer, a partner at Begbies Traynor, who told the Daily Telegraph that if HM Revenue and Customs (HMRC) is stricter in regards to the payment of arrears, many small businesses could suffer.
She believes that changes to the system, which will see firms submit details every month instead of once a year, is one of the "most fundamental changes" to PAYE since 1944.
"We don't know if there will be political pressure to support struggling companies or to be tougher on them and collect outstanding taxes. But what this will give HMRC is the visibility to spot arrears more quickly and to react more quickly," Ms Palmer told the news provider.
"At a time when businesses are already feeling the strain, the potential for quicker demands of additional payments could potentially push them over the edge."
Research by TaxAssist Accountants and the All-Parliamentary Taxation Group in November revealed that 61.1 per cent of firms it questioned said that they were still unaware of what RTI is.
Posted by Thomas Fletcher