RTI rules eased for small businesses across the UK
Following last month’s plea from the Federation of Small Businesses and other industry bodies that a planned overhaul of payroll taxes in April should be softened, HMRC has announced that it is easing real time information (RTI) reporting arrangements for SMEs.
The changes will mean that 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 tax month on the 5th.
The move was welcomed by the Chartered Institute of Taxation who argued that this will give small businesses the extra time they need to provide HMRC with the RTI payment details they need.
“By October 2013 we should have a clearer idea of what concessions a small business will require for RTI to work effectively for the good of all.
“And then we can have a sensible dialogue with ministers and officials about how to build what we have learned into the design of RTI and universal credit in future.”
This view was also shared by the Low Incomes Tax Reform Group: “Permitting [smaller] employers to report slightly later, when they complete a normal monthly payroll process, rather than requiring them to do so on or before the payment, is welcome.”
HMRC argued that it will continue to review the impact of RTI on SMEs over the summer, working alongside employer representatives to tackle concerns voiced by SMEs “without compromising the benefits of RTI or the success of the Department for Work and Pension’s universal credit”.
Limited companies and other employers with more than 50 employees will still be required to report details of payments made to employees, including directors, to HMRC “on or before” the time of the payment from April 6th 2013.
If your company is seeking advice on HMRC payments, they may want to call on the services of insolvency practitioners London to assist them with a number of issues.
If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143.