HMRC hand brief reprieve to small employers
HMRC have finally recognised that some small employers who pay employees weekly, or more frequently, but only process their payroll monthly may need longer to adapt to reporting PAYE information in real time. With this in mind the Revenue have agreed a relaxation of reporting arrangements for small businesses.


Employers with fewer than 50 employees, who find it difficult to report every payment to employees at the time of payment, may send information to HMRC by the date of their regular payroll run but no later than the end of the tax month (5th). This temporary relaxation will however only last until 5th October 2013. 


During the summer HMRC will continue to work with employer representatives “to assess and understand the impact of RTI on the smallest businesses and consider whether they can make improvements to real time reporting which will address their concerns without compromising the benefits of RTI or the success of the Department for Work & Pension's Universal Credit.”
The Institute of Chartered Accountants in England and Wales Tax Faculty had previously recommended monthly payroll to HMRC and the Treasury, so this latest gesture is a step in the right direction. It is hoped that come October it will be clear what concessions, if any, will be available to small businesses.
For situations where employers will not have to report PAYE information ‘on or before’ the time they pay their employee please download HMRC's On or Before (PDF) document for guidance.
Leave a Reply