HMRC proposes extra time for RTI reports

HM Revenue and Customs (HMRC) has proposed that employers be allowed an extension for sending in real-time information (RTI) reports.

From April 2013, employers will be required to begin to send pay-as-you-earn (PAYE) information to HMRC on, or before, the date the payment is made.

However, concerns have been raised that, in certain circumstances, this would be nearly impossible to carry out, and HMRC has proposed that, in situations where it is impractical to report in real time, employers will be give some leeway.

It has proposed a seven-day reporting period in cases where payments vary depending on the work done, such as a casual worker in a pub who is paid at the end of the night, and payments to employees for whom employers do not have to maintain a deduction working sheet.

It has also proposed a 14-day reporting period for payments of benefits and expenses that are subject to class one national insurance contributions, but not taxed under PAYE.

HMRC will publish draft regulations for comment in mid-November, as well as further guidance on reporting ad-hoc advances of pay and operational practice on reporting payments made by expat employers and those operating share schemes.