Employers Want Delay To HMRC Real Time PAYE System

17 - 04 - 2012

Two-thirds of employers say the deadline for implementing HMRC’s PAYE Real Time Information system (RTI) is too tight.

Research by NorthgateArinso showed that 70% of companies say they are concerned about the move, and 64% believe it is being implemented too quickly and should be phased in more slowly to avoid disruption to businesses.

RTI is due to become compulsory from April 2013. It requires employers to report key employee data, pay and tax information every payday, in monthly or weekly returns, rather than annually. RTI is intended to make the PAYE system easier for employers and enable employees to receive information more quickly.

10 UK employers are currently testing the new system as part of a voluntary pilot scheme. It is planned that 1,300 additional employers will be moved to RTI by July this year. Up to 250,000 more will be encouraged to join on a voluntary basis between November 2012 and March 2013.

In the survey, 60% of respondents said they were worried about the additional processes and 44% were anxious about the consequences of making mistakes. More than a quarter of senior decision-makers questioned admitted they did not understand exactly what will be required under the legislation, while 32% felt that there should have been more consultation with business when drawing up the plans.

Employers are advised to find out when they are due to go live so that they can fully prepare for the new system.

Clients of Foremans LLP and Foremans (UK) Ltd will be kept fully up-to-date with the implementation of RTI and how their businesses may be affected. For more information contact us on 01244 625 500.






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