RTI – Temporary Relaxation for Micro Employers

London City

HM Revenue and Customs (HMRC) has announced that existing employers with nine or fewer employees have until April 2016 to get used to reporting Real Time Information (RTI). This means that employers who are still finding it difficult to report PAYE information on or before the date they pay their employees will have more time to adapt their systems and processes for the scheme.

HMRC introduced RTI in April 2013 in order to get employers to report PAYE information on or before the date payment is made, and report any changes when they occur. Failure to provide this information was set to lead to penalties against the employer. However, to get companies used to the scheme it was relaxed until April 2014. For all new employers or employers with 10 or more employees this relaxation period has come to an end, and they will need to report PAYE information in real time from 6 April 2014. However, for micro employers they have a further two years to organise their systems and processes for real time reporting. From April 2016, all employers must report PAYE information in real time, therefore, despite the relaxation period; it is advised to begin getting your processes set up and streamlined sooner rather than later.