News

April 05, 2013

Last chance saloon on RTI, says Forum

The Forum of Private Business (FPB) is urging small firms that are still not ready for Real Time Information (RTI) to act now. With its introduction on 6th April 2013, the biggest change to the PAYE tax system since its introduction in the 1940s is now upon us.

When RTI comes into force, says the FPB, all firms that employ staff will need to have new payroll software installed. The latest snap poll shows that 18% of firms say they are not prepared.

"It's quite clear that there are businesses out there still not ready even at this late stage. The message we would like to get out there now, even at this point, is that it's still not too late to get on board for RTI – the ship has not sailed," said the FPB head of policy, Alex Jackman.

"We know it can seem a daunting prospect to small firms, but it's just not an option to do nothing. Better to act now than have a phone call from an unhappy tax man after 6th April, and that could happen."

HMRC has promised an easy ride for firms that make mistakes using the new system, and has even made a last minute change allowing some initial concessions for certain small businesses that pay staff weekly. However, the FPB has said firms who've taken no steps at all to be ready for RTI could find themselves in trouble.

Rachel Andrews, a financial specialist at the FPB, has been working with HMRC closely for the past two years developing an RTI pilot scheme. She said: "If I had any last minute advice for businesses it would be to have everything you need ready to go. So employee addresses, date of birth, and the correct NI number. The date of birth is more important now than previously, it has to be correct.

"And the correct NI number is also crucial. If any business is unsure as to the number's authenticity, they need to submit an NI validation check with HMRC, and they will come back to you," she said.

Small businesses that pay staff weekly, or more frequently, should also be aware of the concession announced last week by HMRC on RTI compliance. It means these businesses will be able to submit payroll details monthly rather than in "real time" until October, although they will still need specific RTI payroll software to do this.