2013-06-14 00:00:00Advice & TipsEnglishhttps://quickbooks.intuit.com/uk/resources/uk_qrc/uploads/2017/01/RTI-read-logo.pngAre you RTI-ready? HMRC issues RTI reminder to employers

Are you RTI-ready? HMRC issues RTI reminder to employers

2 min read

More than 1.4 million employer PAYE schemes are now reporting in real time, HMRC has said.

This means that more than 83% of small to medium firms and 77% of micro employers have already started to report PAYE in real time. HMRC is now writing to employers who should be reporting PAYE in real time but have not started yet to explain that they have missed a PAYE reporting deadline and how to get started. Information for employers is available at hmrc.gov.uk/actnow

Reporting relaxation for smallest firms to be extended

HMRC has also announced that it will be seeking to extend the temporary relaxation of the new reporting rules for businesses with fewer than 50 employees from October 2013 until April 2014, and that this relaxation will come to an end at this point. The extension means that businesses will not be required to change their approach halfway through the tax year.

The relaxation has meant that these businesses are still required to report through the new system, but are able to do so once a month, rather than each time they pay their employees. This gives small businesses that pay weekly (or more frequently), but who only run their payroll at the end of the month, some extra time to adjust to the new requirements.

From April 2014, all employers need to plan to be reporting in real time.

Big PAYE changes

David Gauke, Exchequer Secretary to the Treasury, said:

“This is the biggest reform of PAYE since its introduction nearly 70 years ago and we are bringing the system into the 21st century. The transition is going well, and the vast majority of employers are now reporting their PAYE information in real time, meaning that HMRC’s records are becoming more accurate and up-to-date. DWP is already using the new system to underpin its Universal Credit pilot, helping it to be more responsive to changes in claimants’ income levels. This is all good news, but we will continue to listen to and work with businesses to ensure that all employers are reporting in real time by April 2014.”

Ruth Owen, HMRC’s Director General for Personal Tax, said:

“The roll-out continues to exceed our expectations. I am delighted that 83% of SMEs and 77%  of the smallest businesses are already on board. We will now write to the minority of employers who are not, to establish how we can help them meet the requirements of reporting in real time.”

Get RTI help

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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