Real time information is on its way…

From April P60s become old hat. Instead of having this yearly round up of employees’ payroll, employers will have to submit real time information (RTI) every time a worker is paid; potentially up to 52 times a year for a weekly payroll.

PAYE itself will not change, but the way and the frequency with which employers send data to HMRC will.

This will only make HMRC more alive to PAYE arrears and accurate information being submitted. No more can businesses use PAYE as cash flow, and many will struggle with the transition from using this creditors’ payment terms.

HMRC has said it will be lenient on employers during the first year when it comes to penalties for failing to submit information, but nothing has been said in relation to how they will handle arrears or overdue payments.

Increased administration is going to be the main concern of most companies, but most software providers have already updated, so the impact, other than a data cleansing exercise, should be minimal.

An easy win for HMRC?

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