Small employers and the RTI concession

I am a “small employer” with only 5, weekly-paid staff so I make use of the RTI relaxation. Please could remind me when it comes to an end?

1st March 2014

HM Revenue & Customs (HMRC) recognises that some small employers who pay employees weekly, fortnightly or more frequently, but only process their payroll monthly may need longer to adapt to reporting PAYE information in real time. HMRC had therefore originally agreed a temporary relaxation of reporting arrangements for small businesses, for a transitional period until April 2014.

This relaxation had meant that employers with fewer than fifty employees could send information to HMRC by the end of the tax month in which the payments were made.

However, HMRC recently announced that existing employers with nine or fewer employees, who need more time to adapt, can report PAYE information on or before the last payday in the month until April 2016. 

The change is narrower than the current relaxation though, as it will only apply to existing employers with nine or fewer employees. All new employers, as well as existing employers with 10 or more employees, will need to report PAYE information in real time from 6 April 2014. 

If you would like any assistance with your payroll affairs, please do not hesitate to contact us to be put in touch with your local TaxAssist Accountant.


By Jo Nockels

Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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