HMRC today announced some good news for small businesses who are struggling to get ready for Real Time Information (RTI).
RTI is the new system for reporting payroll to HMRC. RTI starts on 5 April 2013 and is mandatory for nearly all businesses that employ staff. Under RTI, employers will need to report the payroll information to HMRC before paying the employee.
Less than 50 employees?
Today’s change gives some good news for business with fewer than 50 employees. If you process your payroll monthly, but pay your employees more frequently (eg weekly), RTI has been relaxed so you will not have to report before every pay date. Instead, you can report on the date of your regular monthly payroll run but no later than the end of the tax month (ie the 5th of the month).
This is a small change but will provide some welcome relief for a number of small businesses.
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Added by Jon Davies