RTI annual scheme given go ahead
Changes have been made to the Real-Time Information (RTI) scheme to ease the administrative burden for smaller businesses and freelance contractors.
HM Revenue and Customs (HMRC) is now accepting requests from employers to switch to annual PAYE scheme, having previously announced that it did not have the facility to do so.
In April, HMRC put a halt on employers switching their pay cycles after receiving a higher than expected number of requests from people wanting to avoid the burden of RTI, which requires businesses to submit PAYE information to HMRC each time a worker is paid.
Switching to an annual scheme means employers would only have to provide an Employment Payment Summary (EPS) once a year.
HMRC has now put a ‘fix’ in place to deal with requests to switch to an annual scheme, lessening the administrative burden of RTI on people such as consultants or freelancers.
To qualify for an annual scheme, all employees must be paid annually and within the same single tax month. The employer must only be required to pay HMRC annually.
If you require further any information please do not hesitate to 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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