DELAY IN REAL TIME INFORMATION REPORTING ANNOUNCED BY HMRC

21/03/2013

DELAY IN REAL TIME INFORMATION REPORTING ANNOUNCED BY HMRC

HMRC yesterday announced that they have agreed to delay the introduction of Real Time Information (RTI) for employers with less than 50 employees. 

HMRC have said that they recognise that 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. 

Employers with fewer than 50 employees will have until the 5 October 2013 before they are required to operate their payrolls in real time.  During this time employers can continue to send information to HMRC by the date of their regular payroll run but no later than the end of the tax month (5th).

Employer representatives and HMRC  will work together during the summer to understand the impact of RTI on the smallest business and consider what improvements can be made to real time reporting. 

The announcement is welcomed as it will assist small employers who are not yet prepared for this major change in the PAYE system.   It is important however that employers use this breathing space to get fully prepared for this major change and avoid the inevitable penalties for failure to comply.