HMRC extends monthly RTI respite to 2014

HMRC has extended the temporary relaxation of real time information (RTI) reporting rules for small businesses for a further six months to April 2014. 

The relaxation applies to businesses with less than 50 employees and was originally set to run until October 2013. 

In March, HMRC announced the easement after a widespread campaign across the profession and business groups, urging the government to ease the reporting burden on small firms by allowing them to submit payroll data just once a month.

Typically, this can reduce the number of required reports from up to...

Continued...

» Register now

The full article is available to registered AccountingWEB members only. To read the rest of this article you’ll need to login or register.

Registration is FREE and allows you to view all content, ask questions, comment and much more.

Comments

Haver there been any fines yet?

davidross | | Permalink

In all the circumstances I should have thought that HMRC would not issue any penalties until at least this October, to allow us all to 'play our way in'

TomMcClelland's picture

Is this the concession that applies to almost no businesses?    1 thanks

TomMcClelland | | Permalink

I was aware of a 6 month concession that companies that pay their employees weekly but calculate PAYE monthly could report RTI monthly. That concession is totally irrelevant to 99.9% of small businesses, so extending it to a year isn't really much of a concession.

The wording of the article looks quite dangerous. There is an implication there that all small companies need only report 12 times a year under the concession, even if they pay their employees weekly, which simply isn't the case, so far as I am aware. The problem is that over-hyped reporting of concessions makes small employers think that they're "off the hook".

 

adrian11's picture

Once again the devil is in the details    1 thanks

adrian11 | | Permalink

Having just checked HMRC's web site this is what the original concession said:

These transitional arrangements only apply to small employers who pay their staff manually, for example, weekly or fortnightly and then take their records to their payroll provider monthly to process the payroll for the month. These arrangements do not apply to small employers who can run their payrolls weekly or fortnightly and can report payroll information at the time of payment.

(Note - my emphasis)

But that's not what the headline seems to suggest. Does this concession apply to all small employers or just that tiny minority that pay manually? Why is this important point not made clear in the announcement?

And is it a good idea to introduce new regulations and then say, well we don't really want to enforce them yet, but we will next year? Seems to me to be creating more problems for the future than it solves today.

 

 

Rachael_Power's picture

Thanks for your comments -

Rachael_Power | | Permalink

Thanks for your comments - certainly some valid suggestions. I shall add the above detail to the article.

It is surely common sense    2 thanks

Mallock | | Permalink

It is surely common sense that a once a month FPS (which must be made by the end of each tax month) submission would give HMRC all the information they require at the time they require it and it would save small employers a massive amount of work and headache.

I don't see how receiving an FPS several times a month gives HMRC information that they can work with or act on any more quickly than a monthly submission allows.

The requirement to submit an FPS before every payment is made was obviously thought up by someone without any practical experience who sits in an office without windows or doors. It is an unworkeable requirement for small businesses with part time staff and those who work irregular hours or days.

Old Greying Accountant's picture

It is not HMRC ...

Old Greying Acc... | | Permalink

... it is DWP that want it, they are obviously not going to be ready for in October!

Sitting on the fence

SXGuy | | Permalink

While i agree that weekly FPS submissions can be a burden to small business for various reasons, lets not forget that you can submit FPS in advance.

The only requirement is that an FPS submission must be made on or before the following pay date.

So employers who pay thier staff a fixed weekly wage can submit 4 or 5 FPS submissions in 1 hit, once a month.

This of course doesnt help those who are paid a varied salary each week, which is why i sit on the fence regarding it.