What you really need to know about HMRC's RTI announcement
This is what HMRC said in their announcement:
“HM Revenue & Customs (HMRC) recognise that some small employers who pay employees weekly, or more frequently, but only process their payroll monthly may need longer to adapt to reporting PAYE information in real time. HMRC have therefore agreed a relaxation of reporting arrangements for small businesses.
Until 5 October 2013, employers with fewer than 50 employees, who find it difficult to report every payment to employees at the time of payment, may send information to HMRC by the date of their regular payroll run but no later than the end of the tax month (5th).”
These are the main facts to be taken away from the announcement:
- HMRC have eased reporting but only for a tiny proportion of businesses – it does not apply for all SMEs
- For businesses with less than 50 employees who run payroll monthly, but pay some employees weekly, or more frequently, they will only have to report RTI monthly when they run their payroll
- This will only last until 5th October, when you will have to start submitting RTI every time you pay employees
- If your business pays employees weekly and runs payroll weekly, you will still have to report RTI weekly
HMRC have introduced this relaxation to allow businesses which would struggle the most with RTI some extra time to get fully prepared. However even these businesses will still need to run a full monthly RTI payroll and submit monthly data to HMRC. It is still vital that these businesses are prepared as soon as possible.
This announcement and the confusion it has caused highlights the need to be fully educated on RTI so you can guarantee you are compliant.