HMRC has announced that small businesses with nine or fewer employees will be given additional time to comply with new Real Time Information (RTI) reporting requirements.
Under the RTI regulations, businesses are required to report the payments they make to employees to HMRC at or before the time each payment is made.
Following a pilot, employers have been required to make submissions under the new system from April 2013. They had previously extended the compliance deadline to April 2014 for employers with fewer than 50 employees who pay their staff weekly or more regularly.
While confirming that this temporary relaxation of the rules will come to an end in April, HMRC has now granted existing micro employers up to two additional years to adapt their processes, in order to ensure that they are ready to report payments in real time. As a result, micro businesses will be able to report their PAYE information on or before the last payday in the tax month until April 2016.
The time extension will not apply to businesses starting up during the period between April 2014 and April 2016.
Commenting on the news, Ruth Owen of HMRC said: “This package strikes a good balance by ensuring RTI improves PAYE processes while minimising the impact on micro businesses and their agents by giving them up to two years to adapt.”
However, in a recent survey commissioned by HMRC, many businesses reported that the new regime has either been of no benefit to them, or has served to increase the regulatory burden.
Businesses are being advised to take steps now to ensure that their systems are RTI compliant.
We can help with your PAYE needs, including the new RTI regime. Contact email@example.com or 01573 224391.