HMRC extends RTI deadline for smaller firms
HM Revenue and Customs (HMRC) has further extended the deadline for smaller businesses to start reporting payroll data using the new Real Time Information (RTI) system.
Under RTI, which was introduced in April, employers must submit PAYE information to HMRC each time a worker is paid. However, recognising that some smaller employers who pay employees weekly, or more frequently, but only process their payroll monthly might need longer to adapt to reporting PAYE information in real time, the rules were temporarily relaxed for businesses with fewer than 50 employees. Those smaller employers are permitted to use RTI to report their PAYE data once a month until October this year, by the date of their regular payroll run but no later than the end of the tax month (5th).
This relaxation has now been extended further, to April 2014, amid concerns that many of the UK’s smallest businesses would simply not be ready in time for October.
This will come as good news for many smaller employers who may have been concerned that they would not be ready, despite HMRC granting them a six-month extension.
Now that the deadline has been extended again, this will give employers more time to prepare for reporting PAYE in real time. Those preparations should start now though by seeking professional advice at the earliest opportunity.
For further information, please contact Lorraine Wilkinson at the office.
Author: Lorraine Wilkinson
Lorraine joined Scott & Wilkinson in 2001 bringing with her over 20 years payroll experience. As payroll manager, she oversees the smooth running of the firms payroll bureau which includes all aspects of day to day payroll. Lorraine is...
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