HMRC’s Real Time Information (RTI) tax changes will come into force tomorrow, affecting almost every UK business with employees. However, a shocking number of businesses admitted earlier this week that they were still not prepared for the changes.
Under the new rules, businesses will have to submit PAYE tax information for their employees in real time, and must have specific payroll software in place to help them do so.
Despite the deadline closing in, a poll from the Forum of Private Business (FPB) found this week that 18% of businesses were will not prepared. A further 60% said they were ready, with 21% saying the changes would not affect them as they do not have any staff on their payroll.
To avoid sanctions from HMRC, the FPB’s payroll specialist, Rachel Andrews, says it may not be too late for businesses to act: “If I had any last minute advice for businesses it would be to have everything you need ready to go. So employee addresses, date of birth, and the correct NI number”.
HMRC’s website also advises small businesses on the change, and suggests a range of free payroll software available to download here.
Are you ready for RTI? Will it make any difference to your business? Leave us a comment to let us know.