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HMRC relaxes RTI reporting arrangements for smaller businesses


Businesses with fewer than 50 employees will benefit from a temporary relaxation of the Real Time Information (RTI) reporting arrangements, HMRC has revealed.


Ahead of the introduction of RTI on 6 April, HMRC has acknowledged that certain employers may need longer to comply with the new requirements.


Until 5 October 2013, employers with fewer than 50 employees who pay their staff weekly or more regularly and find it difficult to report at the time of payment may now send information by the date of their regular payroll, but no later than the end of the tax month.


The move has been largely welcomed by professional bodies. Chas Roy-Chowdhury, head of taxation at the Association of Chartered Certified Accountants, said: ‘Deferring RTI requirements until October is a sensible approach and it is encouraging that HMRC has listened to the accountancy and payroll sectors’ collective voice on this matter and acted with common sense.’


HMRC has confirmed that for 2012/13, penalties will not be applied for inaccuracies found within the in-year Full Payment Submission (FPS). However, they may be charged after the end of the tax year based on the final FPS for the year.


Penalties may also apply for inaccuracies found within the in-year returns for the 2013/14 tax year, using existing criteria. From 6 April 2014 there will be new late filing and late payment penalties.


The Revenue will continue to assess the impact of RTI on the smallest businesses throughout the summer.

To discuss the impact of the new RTI regime on your business, please contact us.