HMRC has published news of a relaxation being offered now for small employers to provide extra time to prepare for RTI.
HMRC has accepted that for some small employers who pay employees weekly, or more frequently, but who only process their payroll monthly may need longer to adapt to reporting PAYE information in real time. HMRC has therefore agreed a relaxation of reporting arrangements for small businesses. Until 5 October 2013, employers with fewer than 50 employees, who find it difficult to report every payment to employees at the time of payment, may send information to HMRC by the date of their regular payroll run but no later than the end of the tax month (5th). HMRC plan to continue working with employer representatives during the summer to assess and understand the impact of RTI on the smallest businesses and consider whether they can make improvements to real time reporting which will address their concerns without compromising the benefits of RTI or the success of the Department for Work & Pension's Universal Credit. Additionally and as previously reported back in November 2012 on the seven day easement in respect of on or before, in the regulations published on 15th March, you will see a further relaxation on the reporting of earnings for casuals. The previously announced easement required PAYE information to be reported by the earliest of seven days or the next scheduled payday. HMRC has now removed the reference to ‘next scheduled pay day’, as a result of this amendment, so PAYE information now has to be reported within the next seven days. When payments are made non-electronically (for example cash or cheque) to employees for work done on the day of payment, employers will have to report the PAYE information within the next seven days. CIPP comment : The CIPP supports this announcement and welcomes the opportunity to work with HMRC and the DWP on how we can help the SME to 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 use software, or perhaps are used to sending information in batches to an agent. The CIPP would encourage 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.
RTI STARTER GUIDANCE UPDATE
2 April 2013
HMRC has published a brief update to starter guidance in advance of 6 April where all relevant PAYE guidance for employers will be updated to reflect the go-live of real time information. The aim of this update to starter guidance is to help increase accuracy for individuals with a P45 and more than one job. In such cases, instead of selecting statement C (from the starter declaration) and operating code BR, the employer should select statement B (within their software) and operate the tax code on the P45 - unless the tax code on the P45 is BR, 0T or D prefix - in which case statement C would still apply.
CIPP Policy News Journal
16/04/2014, Page 325 of 519
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