HMRC have announced that the temporary relaxation of real time PAYE rules on reporting have been extended to April 2014.

The RTI system began in April 2013 and it received criticism for both stakeholders and institutes, therefore HMRC made allowances for business with less than 50 employees and allowed them to continue reporting their payrolls monthly until 5 October.  This deadline has now been pushed back to April 2014 which means “businesses will not be required to change their approach halfway through the tax year” said HMRC.

Businesses are still required to report through the new system but are able to do so once a month rather than each time they pay their employees.

ICAEW tax faculty chair said “I welcome the decision by ministers to extend the RTI easement to April 2014 to give HMRC and DWP time to look at the specific problems on or before reporting poses for the smallest businesses.

“It is vital that this issue is dealt with in a way that avoids adding extra burdens to an already over-burdened section of the business community and the announcement shows that government is alive to that.”

Ruth Owen, Director General for personal tax at HMRC added “The roll-out continues to exceed our expectations.  I am delighted that 83% of SMEs and 77% of the smallest businesses are already on board.  We will now write to the minority of employers who are not, to establish how we can help them meet the requirements of reporting in real time.”