Back to News & Insights
/ Tax


Author: Henry Ejdelbaum

Tags: RTI, small businesses

In last week’s Bulletin we reported that HMRC were easing the “report as you pay rules” to the extent
that 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).

We mentioned that some commentators had suggested that the delay would give HMRC time to make a
more permanent change to the rules, this is now clarified by HMRC:

“This is a temporary relaxation to give some extra time to small businesses that pay weekly (or more
frequently) but who only run their payroll (or use an agent to run their payroll) at the end of the month. This
extra time will enable these businesses to adapt their processes or change their arrangements with their
payroll service supplier so that they can comply with the new legislation.

“From 6th October all employers will be required to report PAYE in real time each time they pay their
employees. However HMRC will continue to work with employer representatives during the summer to
assess and understand the impact of RTI on the smallest businesses and consider whether they can make
improvements to real time reporting which will address their concerns without compromising the benefits of
RTI or the success of the Department for Work & Pension’s Universal Credit.”

Speak to your local AIMS Accountant if you would like to know more.