Time For Action
The new electronic PAYE system is being introduced on 6th April but current data indicates that few small businesses are ready for it. Failure to submit the required information to HM Revenue & Customs will have consequences the most significant being the imposition of a penalty regime for late or inaccurate filing.
Commenting, Gerald Irwin of Sutton Coldfield-based Licensed Insolvency Practitioners and Business Advisers, Irwin Insolvency said, “As part of the new process, every business has been invited by HMRC to join RTI but, as has happened, should not mistakenly think that the invitation can be declined. However, the taxman will be prepared to allow certain easements for the tax year 2013/14.”
What is certain is that inaccurate submissions may well attract a penalty based upon the potential lost revenue incurred. Employers will have to complete a Payroll Alignment submission providing all their employees’ mandatory details to ensure that both the employer and HMRC hold consistent and accurate employee data before RTI starts.
“Given the general move towards electronic submission of payroll data, for many employers, the move to RTI will not be a massive burden. It will, however, have an impact on all businesses and pension providers, regardless of number of people employed or salary level”, added Mr. Irwin.
The mandatory data required under RTI must include the employee’s full name, their date of birth, National Insurance number and gender. The submission must include student or temporary workers. Where previously there had been some exceptions, all employees will now have to be treated in the same way when starting work.
Businesses should act now to ensure they are prepared to reap full benefit from the changes.