Real Time Information (RTI)-HMRC backs down temporarily

HMRC as buckled under pressure and will now allow some employers, most of our clients, more time to submit their RTI reports. How might this affect your business? Watch the video and click the “Like” button if you found the information useful please.

Let’s look at the background. PAYE real-time information is mandatory all employers on April 6 this year. Since this date, every time an employee is paid you must report their and the corresponding Tax and National Insurance contributions to HMRC no later than when payments were made. For many small businesses who pay weekly, and to offer “subs” to their employee’s, this was going to be a nightmare (and it still is). However, HMRC is now offering a little leeway.

This temporary concession is available for employers who employ less than 50 employees. For these employers, they can defer making their RTI returns on the date of their regular payroll run, but in no event, after the end of the tax month, typically
the 5th of the following month!

Who said tax does not have to be taxing?

So if you pay your staff weekly, and you have a week ending date on the 3rd, you must make in RTI report at the latest, the third, encompassing all the weeks paid since the previous return. Unfortunately if you calculate payroll earlier than the third, the report will be required at that time.

Like I said at the beginning, this is only a temporary concession. And it ends on October 5 this year. After this time every time you make a payment, you must submit an RTI report!

Let’s increase the redtape shall we?