HMRC has announced an eleventh hour change to its Real Time Information system just a few days before the scheme is due to go live.
Recognising some small employers who pay weekly, or more frequently, may need longer to adapt to reporting PAYE information in real time, the Revenue has agreed a relaxation of arrangements for small businesses for the first six months.
Robert Downes, spokesman for the Forum of Small Business, said: “Nobody likes last minute changes, and this development perhaps hints at something of a panic at HMRC that many, many small firms still aren’t fully prepared for RTI.
“However, this does seem the sensible course of action, because a tax system in meltdown come April is in nobody’s best interest, and no doubt many firms will now be breathing a sigh of relief. It will though now add another layer of confusion around a subject which is already as clear as mud to many SMEs.”
He added: “Any business still unsure of what’s expected of them must seek help immediately from HMRC. They aren’t the enemy, and they are there to help firms become compliant.”
www.hmrc.gov.uk/news/rti-small-businesses.htm