Micro businesses given two year RTI exemption

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HMRC has given microbusinesses, or businesses with nine or fewer employees, an extra two years to prepare for RTI.

Penalties for late RTI returns start from April 2014 and more than 99% of PAYE records are now successfully being reported under RTI, the Revenue said. 

But, a small proportion of micro employers and their agents still need more time to adapt, they added. 

HMRC said that micro employers and, where appropriate, their agents, who need more time will have up to two years to adapt their processes to ensure they are ready to report under RTI in April 2016.

The change to payroll rules is causing problems for some small businesses and their payroll suppliers, including AccountingWEB member Peterdell, who posted on Any Answers...

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About Nick Huber

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I’m a specialist business journalist and have a particular interest in tax and technology. 


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31st Dec 2013 07:33

About time!

"What is the problem?"

The problem is that these businesses are sole traders or two-person partnerships, or limited companies with just one or two directors.  In the past year alone the following issues have delayed these clients getting source information to me on time:

1.  Having a baby.

2.  Having a father die from cancer.

3.  Power outtage due to bad weather.

4.  Illness.

This is just one year, covering 30 clients.  When these events happen to owners who are, for example, running restaurants, they tend to focus on dealing as well as possible with customers at the expense of the paperwork.


Because if you drop the customers you don't have a business to employ staff and pay payroll taxes to anyone.

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04th Jan 2014 14:14

Long term

I wonder if this could end up being a permanent change and maybe extended to bigger businesses.

North London Accountants

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