HM Revenue and Customs (HMRC) has given small businesses a temporary exemption from real time information (RTI) payroll requirements ahead of its introduction on 6 April.
Until 5 October 2013 employers with fewer than 50 employees can send information to HMRC by the date of their regular payroll run, but no later than the end of the tax month.
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A spokesman for HMRC said: “We recognise that some small employers that pay employees weekly, or more frequently, but only process their payroll monthly may need longer to adapt to reporting PAYE information in real time. HMRC have therefore agreed a relaxation of reporting arrangements for small businesses.”
The Chartered Institute of Payroll Professionals (CIPP) supported the decision. Associate director Karen Thomson said: “The CIPP welcomes the opportunity to work with HMRC and the Department for Work Pensions on how we can help small and medium-sized enterprises adjust their processes to comply with RTI.
“It is important to note that, where payroll software is being used, it will create a file each time the payroll is run, so this relaxation is aimed at those who do not utilise software, or perhaps are used to sending information in batches to an agent.
“The CIPP encourages all employers to implement RTI where using payroll software and/or have processes in place already to submit information on or before the employees are paid.”
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HMRC said it will continue to work with employer representatives during the summer to assess and understand the impact of RTI on smallest businesses.
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