RTI – Relaxation of Reporting Arrangements for Small Businesses

HM Revenue & Customs (HMRC) have announced a relaxation of the RTI 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 of the month).  This relaxation is announced only weeks before RTI is officially rolled out to employers.

HMRC’s recognition that smaller employers, who pay employees on a weekly or more frequent basis, may need longer to adapt to reporting PAYE information in real time follows issues raised in a Parliamentary Committee report.  This report raised questions as to whether the RTI system would be fully ready to support implementation of the Universal Credit system in October 2013.

During the coming months HMRC have said they will continue to assess the impact of RTI on smaller businesses and consider whether improvements can be made to real time reporting.  Throughout this period we will continue to post updates on RTI onto our website.

If you have any RTI queries or would like more information on this area please contact Neil Cameron, Payroll Manager by email to payroll@chiene.co.uk or call 0131 558 5800.