Wednesday, 20 March 2013
HMRC running adverts about RTI
HMRC has started running adverts in the press about "Real Time Information Reporting" or RTI for the payment of PAYE taxes. All businesses will need to be compliant by the 6th April 2013. Yes, that is a couple of weeks 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.... Construction CIS scheme is exempt. HMRC are providing software so that businesses can comply. This software can be downloaded from http://www.hmrc.gov.uk/rti
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 6th 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.
Accounting web have a thread online (see below) about the possible trouble spots.