Changes for employers weeks away, expert warns
SMALL business owners across Torbay need to prepare for the biggest change to the PAYE system since its introduction in 1944.
From next month, HMRC will be phasing in a Real Time Information (RTI) demand on all employers.
This means they must report their employees' gross pay, tax, National Insurance contributions and other deductions when or before salaries are paid, so in most cases weekly or monthly. Currently most employers only provide that information annually.
Jackie Bligh, who runs TaxAssist Accountants in Torquay, Paignton and Exeter, said: "This major change is only weeks away now and, for many small business owners, it is going to be yet another administrative burden at a time when they're trying to focus all their resources on serving existing and winning new customers."
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The new RTI reporting rules will become mandatory by October. From April, 2014, new penalties will be introduced for non-compliance.
A joint survey issued to small business owners by TaxAssist Accountants and the All Party Parliamentary Taxation Group last year, found 64 per cent of employers were not aware of the correct deadline for the PAYE changes, 73 per cent had no idea how much it would cost and 61 per cent did not know what it meant.