HMRC have decided to relax Real Time Information (RTI) reporting requirements for micro employers until April 2016. A survey of tax agents and employers have reported that RTI has added to their administrative burdens and costs.
You are a micro employer if you employ less than 10 people.
- The reporting relaxation means that you do not need to file an RTI return until you pay the employee, rather then having to file for RTI "on or before" payment is made.
Summary
The concessions operating for RT reporting are now as follows:
Now until 5 April 2014
Employers with up to 50 employees may report PAYE under RTI by the later of:
- on or before payment to the employer
- or (by concession) by the end of the tax month in which the employee is paid.
- For example: if you are paying an employee weekly or monthly say in March 2014, you must file a Full Payment Submission for the month by 5 April 2014 at the latest.
Up to 5 April 2016
Existing employers with 9 or less employees may continue to report PAYE under RTI by the later of:
- on or before payment to the employer
- or (by concession) by the end of the tax month in which the employee is paid.
New small employers and all other employers are not subject to any concessions and so they must report PAYE on or before payment is made to employees. For example, if paying an employee a salary for April 2014 on 26 April 2014, you must file a FPS with HMRC on or before 26 April. If paying an employee weekly, for say the week ending 18 April 2014, the FPS must be filed on or before 18 April.
Further information, see HMRC: package of help announced for micro employers.
