CIOT: Relaxation on PAYE reporting for smaller employers eases the move to Real Time Information
The Chartered Institute of Taxation (CIOT) is pleased to see that the relaxation1 for smaller employers has assisted many in the move to the new PAYE Real Time Information (RTI) system, resulting in over 1 million reporting in the first month of using the system.2
Commenting, Colin Ben-Nathan, Chair of the CIOT’s Employment Taxes sub-committee, said:
“Many smaller employers and their agents had been expressing concern about how they would cope with the burdens and costs of RTI, but with the relaxation announced for smaller employers in March to alleviate the “on or before” reporting requirement1, this has clearly helped to ease the operation of RTI for those businesses.
“The high volume of submissions since 6 April is also down to the sheer hard work of employers, agents, software companies, professional and other bodies, and HMRC working together. It is vital that this close working continues over the coming months.
“There have inevitably been some teething problems, as evidenced by the significant amounts of additional guidance being issued now by HMRC, and it will be a continuing challenge to get all of this through to employers and agents to ensure they are complying with the new rules.”
The CIOT will be carrying out research into where the real pinch points are with RTI and seeking assurances from HMRC that appropriate steps are taken, including any permanent relaxations, in order to address these matters.
Notes for editors
1. The relaxation (currently temporary until October 2013) announced by HMRC permits employees with fewer than 50 employees who find it difficult to report every payment to employees at the time of payment, to send information to HMRC on the date of their regular payroll run but no later than the end of the tax month. CIOT/LITRG’s (Low Incomes Tax Reform Group) response to HMRC’s relaxation of RTI can be found on the website at:
http://www.tax.org.uk/media_centre/Press+Releases/welc_relax_RTI
2. In a statement issued today HMRC announced that over one million employer PAYE schemes have started to report Pay as You Earn (PAYE) in real time since it was launched last month:
http://hmrc.presscentre.com/Press-Releases/One-million-schemes-use-new-PAYE-system-68be8.aspx
3. Further information on RTI can be found on HMRC’s website:
http://www.hmrc.gov.uk/payerti/
4. The Chartered Institute of Taxation (CIOT)
The CIOT is the leading professional body in the United Kingdom concerned solely with taxation. The CIOT is an educational charity, promoting education and study of the administration and practice of taxation. One of our key aims is to work for a better, more efficient, tax system for all affected by it – taxpayers, their advisers and the authorities. The CIOT’s work covers all aspects of taxation, including direct and indirect taxes and duties. Through our Low Incomes Tax Reform Group (LITRG), the CIOT has a particular focus on improving the tax system, including tax credits and benefits, for the unrepresented taxpayer.
The CIOT draws on our members’ experience in private practice, commerce and industry, government and academia to improve tax administration and propose and explain how tax policy objectives can most effectively be achieved. We also link to, and draw on, similar leading professional tax bodies in other countries. The CIOT’s comments and recommendations on tax issues are made in line with our charitable objectives: we are politically neutral in our work.
The CIOT’s 16,500 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’, to represent the leading tax qualification.
James Knell
External Relations Officer
D: +44 (0)20 7340 2702
Chartered Institute of Taxation
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www.tax.org.uk
The Association of Taxation Technicians
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