Under the big tax shake-up of reporting in Real Time Information (RTI), HM Revenue and Customs says that more than 99 per cent of PAYE records are now successfully being reported in real time. Almost 93 per cent of active employers are now using the new processes to send PAYE information about their employees.
Although HMRC says that the vast majority of employers are finding reporting in real time straightforward, it recognises that a small proportion of micro employers and their agents still need more time to adapt.
HMRC has therefore agreed that existing micro employers (and, where appropriate, their agents) who need more time will have up to two years to adapt their processes to ensure they are ready to report all payments in real time before April 2016.
All employers will be required to report PAYE each time they pay their employees by April 2016 (unless an exception applies - for example, in some limited circumstances employers have a week to report payments to casual workers). HMRC will be encouraging micro businesses to adapt their processes sooner to ensure that they are ready to report all payments each time they pay their employees by April 2016.
This is narrower than the current relaxation which comes to an end in April 2014. The new relaxation will only apply to existing employers with nine or fewer employees.
All employers starting to operate PAYE after April 6, 2014, as well as existing employers with 10 or more employees, will need to report each time they pay their employees from April 2014.
Further information about the package to hep micro businesses adjust to RTI is available on HMRC's website.
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Susie Hughes © Shout99 2013