Thursday, 6 December 2012
Real Time Information - Can you pay all your PAYE?
Is your business ready for Real Time Information (RTI)?
All PAYE returns will have to be done online by October 2013 with many companies starting to do it from April 2013.
The biggest change is that all employers will have to file pay and tax details for their employees online when wages are paid – rather than at the end of the tax year. The way it currently works the HMRC only knows the true liabilities on the 19th of May following the end of the tax year when the P35 is filed.
Failure to file these returns online in "real time" will result in fines from £2000 for smaller businesses and much more for large businesses. HMRC are likely to know about businesses that are late with payments at a very early stage. This means that companies need to be ready to talk to HMRC earlier.
If your business is having problems paying PAYE then it may be that a "Time to Pay" arrangement can be agreed with HMRC to allow the paying off of tax over a short time scale of say 6-12 months. However, it is important not to ignore any build up of tax debts.