Taxman eased new real time PAYE requirements for SMEs

New rules from April will see real-time PAYE reporting rolled out in the UK, but those businesses who employ less than 50 people and are struggling with increased PAYE filings to HMRC will now have a longer filing period.

The taxman has temporarily eased on the the new real-time PAYE requirements for small business and this will be in place until 5 October 2013 in order to allow smaller employers to catch up, especially those who pay their employees weekly or more frequently, but only process their monthly payroll.

Many concerns have been raised and HMRC said it will continue to work with employer representatives during the summer to assess and understand the impact of the real time initiative on the smallest businesses and will consider whether they can make improvements to real time reporting which will address their concerns with compromising the benefits of RTI.

In November 2012, head of the ICAEW’s tax faculty Frank Haskew and  faculty chairman Paul Alpin told MP’s of their concerns for SMEs and today welcomed HMRC’s concession.

Paul Alpin said “Having raised the issue with the Treasury Committee, ministers and with HMRC over recent months this is the solution I was looking for, employers who report monthly but who were faced with weekly, or worse, reporting under RTI can now breathe a sigh of relief.”

“Small businesses have been spared a new and unnecessary burden because ministers and HMRC listened.  Now we have to use the next six months to secure a permanent solution.  I am confident that we will be successful.”

Patrick Stevens, CloT President said “By October 2013 we should have a clearer idea of what concessions small businesses will require for RTI to work effectively for the good of all and then we can have a sensible dialogue with ministers and officials about how to build what we have leared into the design of RTI and universal credit in future.”

For businesses with more than 50 employees, real time reporting will roll out nationally from April will four million who are currently reporting their pay using the scheme.