News: New tax rules to be relaxed for some small businesses

tax returnHMRC has announced a last minute change to the upcoming Real Time Information (RTI) tax initiative, just over two weeks before it is due to come into force.

The change will see the new tax rules relaxed for many small businesses when the scheme is implemented on April 6th. Originally, the RTI rules required businesses to submit detailed tax information each time they paid their employees.

However, after a call from the Federation of Small Businesses (FSB) to relax the requirements for small businesses, HMRC has announced that small businesses with under 50 employees who pay their staff weekly will be able to submit tax information on their usual payroll date. This is on a trial basis which is currently set to run until October.

John Walker, national chairman of the FSB, said: “[HMRC] has taken on board the FSB’s concerns about the time constraints and problems that small firms will face when having to report in real time and will help those firms that hire casual staff.

“We hope that HMRC make this regular reporting a permanent measure to help the smallest firms when they review the system in the summer. We look forward to seeing those findings.”

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Kasey writes about the latest small business and website news for bOnline. Find Kasey on Google+, or follow bOnline on Facebook, Twitter, LinkedIn and Google+

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