RTI rule relaxation extended
HM Revenue & Customs (HMRC) is to extend the temporary relaxation of new Real Time Information (RTI) reporting rules for businesses with fewer than 50 employees. In accountancy terms, this will make life easier for smaller firms.
HMRC originally announced the rule relaxation on 19 March for employers with less than 50 employees who pay them weekly or more frequently, but only process their payroll monthly.
It said it recognised that companies’ accountants would need longer to adjust to real time reporting of PAYE information and would therefore be able to send the data to HMRC by the date of their regular payroll run, but no later than the end of the tax month.
The concession was originally due to run until 5th October 2013 but on 12th June, HMRC said it would be extending the option until April 2014.
Despite the concession to businesses getting to grips with RTI, employers could still face accounting penalties for inaccuracies on RTI returns submitted in the 2013-14 tax year, although there will be no penalties for late payment until April 2014.
Link: HMRC RTI information