Small businesses may struggle with RTI September 2011
Posted date: 16 September 2011
Small businesses will struggle to cope with Real-Time Information (RTI), according to Target Chartered Accountants.
The Pay As You Earn (PAYE) system is being reformed so that employers can submit pay information every time an employee receives their wages, instead of using annual reporting. Target Chartered Accountants believes that the requirements will be an administrative burden to small companies.
Angela Brake, Head of Payroll, said: “Smaller firms that don’t have their own specialist payroll department will struggle to cope with the increased administration, especially if they don’t have the right PAYE software and payment systems in place.”
She advises that small and medium-sized enterprises appoint a Bacs-approved payroll bureau to ensure that they full comply.
“This way they’ll be able to meet all the requirements of the new legislation when it comes in with minimum disruption,” Brake added.
RTI is due to be implemented from April 2013 with all employers becoming compliant by October 2013. This will coincide with the Government’s introduction of its new welfare system, Universal Credits. Testing of the new system will take place next year with voluntary employers.
Do you think that small employers will struggle with RTI? Email us your opinion: dawn.lewis@lexisnexis.co.uk.
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