RTI time limit – extension for SME’s

Since April 2013 almost all employers must report payroll information online to HMRC when or before any employee is paid. This information includes details of employees, their pay, tax and national insurance deductions.

HMRC had previously recognised that some small employers who paid employees weekly, or more frequently, but who only processed their payroll monthly, may have needed longer to adapt to reporting PAYE information in real time. As a result they had agreed a temporary relaxation of reporting arrangements for small businesses with fewer than 50 employees. This allowed small businesses who found it difficult to report every payment to employees at the time of payment, to instead send the information to HMRC by the date of their regular payroll run but no later than the end of the tax month (5th).

This was originally to apply up to 5 October 2013. However, HMRC have announced that they are planning to extend the temporary extensions to 5 April 2014. After the relaxation period ends all employers will be required to report PAYE in real time each time they pay their employees.

If you feel that you could benefit from this temporary extension please contact Stephen Charles on 0114 2667141 or email sac@hawsons.co.uk for further advice.

Disclaimer – for information of users: This briefing is published for the information of clients. It provides only an overview of the regulations in force at the date of publication and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this briefing can be accepted by the authors or the firm.