Small Business Tax Advice: HMRC Offers Small Employers A Temporary PAYE Real Time Information Concession.

Are you the owner of one of the UK’s numerous small businesses?

Do you employ 9 or fewer employees? Well, if this is you, then Steven Glicher accountants can bring you a little good news. HMRC has agreed to relax the rules with regard to RTI reporting for small businesses. The relaxation might only be temporary, but we accountants doff our caps to HMRC none the less: good news is good news after all, especially in the run-up to Christmas when so many other financial and administrative matters may well take precedence.

So what is HMRC proposing?

Well, the Revenue has announced that existing employers with nine or fewer employees, who require more time to adapt to the PAYE Real Time Information (RTI) system, can submit PAYE data on or before the last payday in the tax month up until April 2016. Normally under the RTI system employers are obliged to tell HMRC about gross pay, tax and National Insurance contributions when or before payments are made.

Why is HMRC’s concession so important? Well, more than 99% of PAYE records are now said to be successfully using RTI with the vast majority of employers finding the new PAYE reporting system straightforward. However, HMRC has rightly recognised that some smaller employers, or micro employers as they have been termed, may need more time to adjust.

That’s why it has given smaller employers a further two years to adapt their processes so that they can be ready for reporting in real time to begin in April 2016. It should be stressed that HMRC will never the less be encouraging micro businesses to adapt their processes as soon as possible: to improve efficiencies and productivity they have therefore provided a package designed to help micro employers move towards RTI reporting.

The package includes:

  • Improved guidance, including best practice scenarios where employers will not have to report PAYE information ‘on or before’ the time they pay their employee.
  • Ongoing work with the software industry to harness technology in an effort to develop new ways to report PAYE information on or before the date they pay their employees – such as the use of mobile apps.

The concession is good news for small businesses, but it must be stressed again, that this concession is only temporary. Before long this easement will be withdrawn, so it pays to be prepared well ahead of time. If you are currently experiencing problems with RTI, then Steven Glicher accountants are here to help you. We can file all of your year-end and in-year returns on your behalf with HMRC and provide you with P60s to distribute to your employees.

We can help you manage the migration to RTI and all the reporting changes that it involves, leaving you to concentrate on managing and growing your business. If you would like clarification on this matter or would like to discuss any other issues relating to small business tax advice, then give Steven Glicher accountants a ring on 0161 485 8007.

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