Moorfields comment on how small firms can get their house in order as impending PAYE overhaul kicks in?
With businesses required to start reporting PAYE information to HM Revenue & Customs (HMRC) in real time from April 6th, small firms across the UK have just days to ensure that their systems are suitably up to speed for the changeover.
HMRC has argued that businesses will benefit from the simpler requirements for PAYE information details, which will require them to report payments made to employees, including directors, to HMRC “on or before” the time of the payment – avoiding an annual tax return.
They also argue that once the system is up and running, businesses will benefit from a £300m saving in administration costs.
While SMEs with less than 50 employees who are experiencing difficulty in reporting each payment to employees at the time of payment can send this information by the date of their regular payroll run, and “no later” than the end of the following month on the 5th (up until October 5th 2013), it is important that small firms are sufficiently prepared for the changes.
Here are just a few ways that SMEs can prepare for reporting PAYE in real time:
Ensure your software is up to date
Your businesses payroll software may need to be updated to handle RTI (real-time information). If your business has a total of nine or less staff then you can utilise HMRC’s free Basic PAYE Tool or one of the free payroll software packages.
Ensure all information is current and accurate
Prior to the changes you will need to ensure that your employee details are accurate and up-to-date, and this will include the following information: name, date of birth, gender, address and valid National Insurance number.
Outline arrangements with your payroll service provider
If you use the services of a payroll bureau or accountant you will need to contact them to see how your arrangements will change with the introduction of RTI and if any additional information will need to be provided.
If your business needs guidance on company voluntary arrangements or any other matter, you may want to consult professional advice.
If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143.