Small firms get more time to get ready for RTI submissions
HMRC has announced that it will be extending the new Real Time Information (RTI) reporting rules for businesses with fewer than 50 employees from October 2013 until April 2014.
This new extension now means that businesses are not required to change their approach halfway through this tax year. But small businesses are still required to report through the new system on a monthly basis, rather than each time they pay their employees.
This allows many businesses that pay weekly (or more) to report monthly instead of everytime they pay a member of staff.
HMRC, says that more than 1.4 million employer PAYE schemes are now reporting in real time since the start of the new tax reporting requirements in April. According to HMRC 83% of SMEs and more than one million micro employers have already started to report PAYE in real time.
HMRC goes on to say that from April 2014, all employers in the UK will need to plan to be reporting in real time, but also say it is continuing to work with businesses over the coming months to identify whether there are any specific circumstances that it needs to cater for the long term.
HMRC's director general for personal tax, said: "The roll-out continues to exceed our expectations. We will now write to the minority of employers who are not on board, to establish how we can help them meet the requirements of reporting in real time."
This extension for small businesses with less than 50 staff, till April 2014 is very helpful for SME's. It will help them continue to engage positively with RTI and to keep the costs of RTI reporting as low as possible.
At Tax Affinity Accountants we are experts in Payroll and are already helping our clients submit their payroll information on time and regularly to HMRC, feel free to contact us if you need help in your RTI complaince at www.taxaffinity.com.
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