The introduction of real time information, including a new electronic messaging system for communicating with HMRC, may strain relations between employers and payroll providers, a credit management company has said.
Penalties for late PAYE returns start from April 2014. Although employers will pay any penalties it will be up to payroll departments or payroll suppliers to ensure that payroll information in compliance with new rules.
“The sheer scale of RTI and the scope for automated penalties in what is a very complex real-time reporting infrastructure leaves the payroll provider highly exposed for all issues that arise,” said CreDec, a company which provides credit management services to SMEs.
Time spent helping customers comply with RTI rules, including providing customers with information to challenge HMRC penalties, could squeeze profit margins for payroll providers, CreDec added...
About Nick Huber
I’m a specialist business journalist and have a particular interest in tax and technology.