The Real Time Information (RTI) PAYE system has been trialled by HMRC ahead of a full launch in April 2013, however recent findings have revealed that many businesses are still unaware of the full details of the new system.
A survey of over 1,700 businesses from the Federation of Small Businesses (FSB) found that 25% of those questioned had never heard of the RTI; a worrying number given it is only six months until it comes into force. Only 16% said they were “fully aware” of the new system, with 60% of the businesses surveyed saying that they’d had no communication from HMRC about it.
The CIOT recently expressed concerns over aspects of the RTI system’s penalties, and recommended that there should be no late filing penalties for the first full year that the RTI is in operation. The FSB found that almost two thirds of the 1,700 businesses are not confident of the system being successful.
FSB Chairman, John Walker, spoke of their concerns about the system, saying; ”With only six months until RTI is due to be implemented, the FSB has real concerns that not enough businesses are aware that is just around the corner… We’re concerned that it could flop if Government does not step up its game in communicating the changes.”
Mr Walker continued, saying it is critical for HMRC to inform businesses how it will affect them, describing how 30% of firms have had to buy new software to be able to provide the real time information to HMRC. He said HMRC need to “act now” so small firms can prepare, adding that their poor communication “just isn’t fair if [businesses] are then penalised for not complying.”
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