RTI Relaxation for Small Employers Announced
HMRC announced it is extending the relaxation of Real Time Information (RTI) PAYE reporting requirements for small employers for a further six months.
In summary, this means for the rest of the tax year small employers will not have to immediately report salary and other payments made to employees but can do it monthly. In practice, it creates the opportunity to attempt complying with the new PAYE reporting requirements with a bit of a breathing space and reduces the risk of penalties during this first year.
The Chartered Institute of Taxation (CIOT) had previous expressed concerns on the matter, and sees the announcement as great news for small employers. Stating they do not only expect the change will keep RTI reporting cost down, but it also demonstrates how HMRC are listening to small employers and the organisations acting on their behalf.
For more information on RTI PAYE reporting and the affect it may have on your business, please contact RM2 via Fiona.Bell@rm2.co.uk.