RTI may trigger more winding-up orders
Keith Steven, turnaround expert and managing director of KSA Group warned that the introduction RTI may lead to an increase in winding-up order petitions.
The gloomy scenario will come true, he explained, if companies don't start being honest about paying PAYE and employ good cashflow practices.
Speaking at the Turnaround in 2013 event in Bristol recently, Steven highlighted the cashflow difficulties RTI would pose for some small businesses.
"We work with some companies where there is evidence of understating PAYE each year," he said.
"HMRC don't find out until year-end when they file their P35 and then there is a discrepancy. The company then applies for a time-to-pay deal with HMRC and they have some leeway to pay the outstanding PAYE," he added.
Under the new RTI regime, employers will have to reveal their PAYE figures whenever a payroll is run and pay the outstanding tax by 19th of each month.