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UK SMEs still uncertain over RTI system

According to research, many SMEs in the UK – including limited companies and contractors – are unprepared for the upcoming changes in payroll legislation.

The Forum of Private Businesses (FPB) has suggested that while most small firms operating in the UK are aware of the forthcoming changes, many have expressed concerns. Over half of the businesses surveyed (65%) said they are worried about whether or not they will be able to manage reporting in real time.

HMRC confirmed the new Real Time Information (RTI) system will be in effect from 6th April and will affect any business that has employees. With the real time system, rather than sending PAYE details such as National Insurance and tax at the end of the financial year, companies will now have to send the necessary data prior to payday via the Internet.

The FPB’s chief executive, Phil Orford, explained that many businesses are still ignorant over what the new system’s processes will entail – despite suggestions that the understanding of the RTI’s implications for the business community has grown. Cheap accountants for contractors and small companies will be able to clarify the details of the new system.

Discussing the concerns expressed by the small businesses in the study, Orford said it paints a gloomy picture of the business community’s confidence in HMRC. While the companies involved in last year’s pilot run for the RTI system were slightly more confident over the changes, Orford finished by highlighting that fears clearly exist over how seamless the move to the new system will turn out to be.

Posted by Mark
February 26, 2013

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