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Wednesday, 30 January 2013

RTI to be in force in April. Are you ready?

The Telegraph wrote another piece highlighting the change that is about to come and hit small businesses - The start of "Real Time Information Reporting" or RTI for the payment of PAYE taxes.  All businesses will need to be compliant by the 5th April 2013.  Yes, that is a couple of months away.  PAYE will need to be paid over and reported monthly as opposed to the end of the tax year.  If you pay weekly then it will need to be reported and paid over weekly...

http://www.telegraph.co.uk/finance/personalfinance/9834709/HMRC-is-about-to-get-even-more-taxing.html

In some ways this is a good thing in that there isn't the panicky complicated form filling at the end of the year BUT only if you are aware of it and your payroll system is using software that is compliant.  If not then it could be a major headache.  Playing catch up after the 5th April could be tricky.

In the end it is likely to be businesses that are not compliant and are in arrears with their PAYE who will be hardest hit.  HMRC will know very quickly if you are in arrears and are likely to chase earlier.  What is more  directors who have overdrawn directors accounts may not be able to reverse them easily into salary and PAYE.

If you need to talk to someone about how this might affect your company then talk to Keith Steven on 07833 240747

See his piece in the press about RTI or have a look at our RTI page on Company Rescue




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Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.

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