HMRC (HM Revenue & Customs) has announced an 11th hour change to its Real Time Information system, its new way of reporting PAYE, just two weeks before the scheme goes live, according to the Forum of Private Business (FPB).
Recognising some small employers who pay weekly, or more frequently, may need longer to adapt to reporting PAYE information in real time, the Revenue has agreed a relaxation of arrangements for small businesses for the first six months.
FPB spokesman Robert Downes said: 'Nobody likes last minute changes, and this development perhaps hints at something of a panic at HMRC that many, many small firms still aren't fully prepared for RTI.'
'However, this does seem the sensible course of action, because a tax system in meltdown come April is in nobody's best interest, and no doubt many firms will now be breathing a sigh of relief. It will though now add another layer of confusion around a subject which is already as clear as mud to many SMEs.
Mr Downes continued: 'Any business still unsure of what's expected of them must seek help immediately from HMRC.'
For more information visit
http://www.hmrc.gov.uk/news/rti-small-businesses.htm
