RTI Relaxation Extended for Smaller Employers until April 2014

HMRC has announced that the temporary relaxation of Real Time Information (RTI) reporting rules has been extended to April 2014.

Ken Davies, Mitchell Charlesworth's Director of Payroll analyses what this means for smaller employers yet to meet the full reporting requirements of RTI:

Real Time Information (RTI), which sees PAYE reported on or before the date payment is made to an employee, and changes reported as and when they occur (rather than at the end of the financial year) has now been with employers, pension providers and payroll bureaux since April 2013.

Following widespread concern and criticism from employers and other stakeholders leading up to the April 2013 deadline, HMRC announced that allowances would be made for businesses with fewer than 50 employees. Under this relaxation, where these businesses paid their staff regular pay in advance of a main payroll run, they could report their payrolls on a monthly basis until October 2013.

Now, after further consultation, the deadline has been pushed back even further for these businesses until April 2014.Employers should note however, that they are still required to report through the new system but only need to do this once per month, rather than each time they pay their employees.

This extension is particularly good news for those businesses who may be trying to agree with employees an amendment to their employment contract to facilitate payment on a monthly basis. It is also a sensible decision as it allows HMRC a bit more time to analyse specific problems that may be faced by the smallest businesses.

For more information about RTI, or to find out how Mitchell Charlesworth's Payroll department can manage your RTI requirements for you, contact Ken Davies on 0151 423 7500 or email: ken.davies@mitchellcharlesworth.co.uk.

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