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RTI concession for small employers

Posted by: edwinsmith on March 28th, 2013

HMRC have made a short term relaxation on the regulations for reporting under Real Time Information (RTI) to help small employers get to grips with the new payroll reporting regime.

The concession will last until 5 October and relates to the timing of the online submission for the Full Payment Submission (FPS) and the Employer’s Payment Summary (EPS).  LATEST UPDATE: in June 2013, HMRC announced that this will now be in place until 5 April 2014.

NEW CONCESSION

A new concession with a similar relaxation of regulations detailed below has been introduced from 6 April 2014 and it will run for two years ending April 2016. It is only available to employers with less than 10 employees with schemes in existence on 5 April 2014. Any other employer including all new employers/payroll schemes set from 6 April 2014 will need to comply with full regulations.

Under RTI employers are required to make:

  1. A FPS electronic submission report to HMRC before they make any payment to employees.
  2. An EPS if during a tax month an employer makes any statutory payments such as Maternity Pay, Sick Pay etc  or employer has not paid anyone or employer (limited company) has had CIS deductions from their income.

The concession will allow small employers to make submissions under RTI when they complete their payroll run providing it is on or before the last day of the tax month (5Th). This may be after the employer has made payroll payments to their employees.

As the relaxation of the rules is only temporary then it would be advisable to use the period to 5 October to introduce weekly/monthly routines so that the RTI rules can be implemented in full once the concession is withdrawn.

Please contact us  for further advice on PAYE Real Time Information (RTI)

Filed under: Employers, PAYE