HMRC yesterday announced some good news for small businesses who are struggling with the extra admin burden of Real Time Information (RTI).
RTI is the new system for reporting payroll to HMRC. RTI started on 5 April 2013 and is mandatory for nearly all businesses that employ staff. Under RTI, employers need to report their payroll information to HMRC before paying the employee.
Less than 50 employees?
The change gives some good news for business with fewer than 50 employees by extending the trial period where small businesses benefit from less admin in applying RTI.
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 relaxation was due to end on 6 October 2013, but has now been extended to 5 April 2014.
This is a small change but will provide some welcome relief for a number of small businesses.
If you would like to arrange a free meeting with a Liverpool accountant to discuss your RTI and payroll requirements, either at our office or at your premises, please contact us on 0151 724 3960 or by email at [email protected]
Alternatively, you can use our website contact form.
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Added by Jon Davies