Some users of The Real Time Information (RTI) scheme for PAYE have experienced difficulties with certain aspects since its introduction in April 2013. HMRC have recently made announcements that should assist:
Relaxation on reporting rules
For businesses with fewer than 50 employees, the temporary relaxation of new reporting rules has been extended from October 2013 until April 2014. Businesses are still required to report using RTI, but are able to do so once a month, rather than each time they pay their employees. Where wage payments are made weekly, for example, but payroll is run once a month, extra time is therefore available to report. However, this relaxation will be removed from the start of the next tax year on 6 April 2014.
Since the introduction of RTI in April, HMRC have been unable to process requests for ‘annual PAYE schemes’, due to technical problems. These issues have now been resolved and any requests made since then have been accepted.
Annual schemes can be a useful and time saving method of dealing with payroll, but their use is limited by the following requirements:-
· All the employees are paid annually (generally only applicable to director only PAYE schemes).
· Everyone is paid within the same single tax month.
· The employer is only required to pay HMRC annually.
Rothmans provide payroll services to many clients and if this is of interest to you, please contact us.