HMRC have published news of a relaxation being offered now for small employers to provide extra time to prepare for RTI.
HMRC have accepted that for some small employers who pay employees weekly, or more frequently, but who only process their payroll monthly may need longer to adapt to reporting PAYE information in real time. HMRC have therefore agreed arelaxation of reporting arrangements for small businesses.
Until 5 October 2013, employers with fewer than 50 employees, who find it difficult to report every payment to employees at the time of payment, may send information to HMRC by the date of their regular payroll run but no later than the end of the tax month (5th).
The CIPP, along with a number of organisations that included the Chartered Institute of Taxation, The Association of Accounting Technicians and The Institute of Chartered Accountants in England and Wales, lobbied the government a few weeks ago by sending a letter to David Gauke MP to request for reconsideration of the treatment of SMEs in their preparation of RTI. To read the Minister’s response, see below.
HMRC plan to continue working with employer representatives during the summer to assess and understand the impact of RTI on the smallest businesses and consider whether they can make improvements to real time reporting which will address their concerns without compromising the benefits of RTI or the success of the Department for Work & Pension’s Universal Credit.
Additionally and as previously reported back in November 2012 on the seven day easement in respect of on or before, in the regulations published on 15th March, you will see a further relaxation on the reporting of earnings for casuals.
The previously announced easement required PAYE information to be reported by the earliest of seven days or the next scheduled payday. HMRC have now removed the reference to ‘next scheduled pay day’, as a result of this amendment, so PAYE information now has to be reported within the next seven days.
When payments are made non-electronically (for example cash or cheque) to employees for work done on the day of payment, employers will have to report the PAYE information within the next seven days.
