HMRC to relax RTI payroll reporting for small employers

HM Revenue and Customs (HMRC) has relaxed real-time information (RTI) reporting arrangements for small employers.

Employers with fewer than 50 employees will have until 5 October 2013, rather than 6 April 2013, to comply with the legislation.

Until the revised date, these employers will be able to send information to HMRC by the date of their regular payroll run, but no later than the end of the tax month (5th).

RTI legislation requires all employers, from April 2013, to begin to send pay-as-you-earn (PAYE) information to HMRC on, or before, the date the payment is made.

HMRC will continue to work with employer representatives during the summer to assess and understand the impact of RTI on the smallest organisations and consider whether it can make improvements to real-time reporting to address their concerns without compromising the benefits of RTI.

A spokesperson for HMRC said: “HMRC has listened closely to our stakeholders and we have adapted our plans.

“Evidence from our pilot is that reporting in real time works well for the majority – 90% of pilot employers report on or before the date of payment and most find it easier then they expected.

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“We recognise that a minority of employers who pay weekly or more frequently and run payroll monthly may need a little longer to adjust to the new way of reporting, so we have introduced a temporary relaxation to the reporting for small businesses with 50 or less employees, which will allow them time to adjust and put new business processes in place.

“Employers using payroll software are encouraged to report on or before each payment as this will be easier.”