Tuesday, 2 April 2013
Businesses still not ready for change to PAYE
Real Time Information (RTI), will come into force on 6th April, at which point all firms that employ staff, regardless of numbers, need to have new payroll software installed and will need to report monthly in the first instance and weekly ( if wages paid weekly from October )
In a poll carried out by The FPB last week it showed 18% of employers are still classifying themselves as "not prepared". The study also revealed 60% were ready, with the remaining 21% saying RTI was not relevant to them i.e. they employed no staff.
"It's quite clear that there are businesses out there still not ready even at this late stage. The message we would like to get out there now, even at this point, is that it's still not too late to get on board for RTI - the ship has not sailed," said the group's head of policy, Alex Jackman.
"We know it can seem a daunting prospect to small firms, but it's just not an option to do nothing. Better to act now than have a phone call from an unhappy tax man after 6th April, and that could happen."
One aspect that is very important is that all the details of the employees needs to be correct. The correct national insurance number is crucial now and the date of birth of all employees. This may seem obvious and trivial stuff but if there are any errors it will cause problems down the line.
Most importantly if your business in the past has under reported PAYE payments owed in the hope that business would pick up by the year end will no longer have this option available to them.
See our page on RTI and how it will affect struggling businesses