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LITRG welcomes the announcement yesterday by HMRC that it is making a significant relaxation to the Real Time Information (RTI) PAYE reporting requirement for small employers for a limited period.

Background

From 6 April 2013, under RTI most employers will be required to report details of payments made to employees to HMRC on or before the time of the payment. The relaxation will apply to those smaller employers with fewer than 50 employees.

LITRG reaction

Anthony Thomas, Chairman of LITRG, welcomed the initiative by HMRC, with the DWP’s support, to adapt the RTI programme to suit the needs and capabilities of small businesses. This would now allow many small businesses, which might have struggled with RTI, to use it with minimum disruption. Permitting employers to report slightly later, when they completed a normal monthly payroll process, rather than requiring them to do so on or before the payment, was welcome.

Everybody understood that RTI needed to work well, not just to eradicate avoidable mistakes from the PAYE system, but to help Universal Credit be responsive and sensitive to the needs of claimants. It was accepted that small and growing businesses would bear the major part of the cost and administrative burden of RTI. Giving small businesses some leeway at least over the next few months was good news. The Government was showing its willingness to understand how best they could assist in relieving the pressures on that important sector of the economy.

HMRC announcement

The announcement on RTI can be found on HMRC's website here.