HMRC have seen sense and given small businesses an easy introduction to Real Time Reporting (RTI).
If you have fewer than 50 employees you can file your information with HMRC when you complete your normal payroll run but no later than the end of the tax month (5th of each month).
What does this mean?
You may only need to report to HMRC once a month, even if you have weekly paid staff.
This is not a permanent change but an easement until 5th October 2013. HMRC said “they had adapted its plans after listening to key industry stakeholders”.
What about penalties?
HMRC have confirmed that there will be no in-year penalties for the first year (2013-14) but there will still be late payment penalties.
HMRC glitches you should know about
RTI will be used to check on employers’ monthly payments of PAYE and NIC but the system HMRC are using is flawed and debt management offices are chasing debts that do not exist.
If you get a call from the debt management department of HMRC – do not panic!
They will ask you a series of questions to understand why the system has flagged an underpayment and to confirm the balance is not due for collection.
If you have your own single person limited company and you pay yourself a salary, then RTI will apply. If you need help on running your payroll talk to your accountant or contact Clearways Accountants for assistance.