A third of small firms not prepared for HMRC PAYE changes

As many as 33 per cent of small businesses are unprepared for Real Time Information (RTI) - one of HMRC’s biggest changes to the PAYE tax system for many years - new research suggests.A study from AccountantAuctions.com found that fewer than two in three small businesses with employees are ready for the changes. Under RTI, employers will need to send data around PAYE, NIC and student loans every time they pay employees, instead of at the year-end as they do now. HMRC believes the system will make things more efficient and accurate.The new RTI scheme comes into effect in April 2013, so businesses are being urged to get serious about making preparations now. Rachel Whitman, founder of AccountantAuctions.com said, “Around a third of businesses still don’t know that these changes are about to take place, so it is likely that very few Directors know their responsibilities.”She added, “Many accountants are scurrying around trying to get their payroll systems updated in order to be able to submit bulk loads on monthly returns, its a headache no one really needs. Directors that receive a fixed monthly salary, it’s time to do your tax planning at the start of the year rather than the end, so get your house in order now.”

http://www.50percenttax.co.uk/index/2012/9/14/a-third-of-small-firms-not-prepared-for-hmrc-paye-changes.html