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CIOT: Tax advisers welcome extension of RTI relaxation for small employers

CIOT: Tax advisers welcome extension of RTI relaxation for small employers

The Chartered Institute of Taxation (CIOT) has welcomed the announcement today by HMRC, that it is extending the relaxation of Real Time Information (RTI) PAYE reporting requirements for small employers for a further six months.1

Colin Ben-Nathan, Chairman of the CIOT’s Employment Taxes Sub-Committee, commented:

“On or before reporting’ has been a significant concern for small employers. This announcement is good news and shows that HMRC has continued to listen to the concerns of small employers, , their agents and the organisations that represent them.  It will help small employers continue to engage positively with RTI and to keep the costs of RTI reporting to a minimum.”

Colin Ben-Nathan added:

“This extension of the relaxation to April 2014 is very sensible. It will provide more time for the necessary research into whether permanent changes need to be made to the RTI processto take account of the needs of the smallest employers. The CIOT is keen to work with HMRC on this to ensure that unnecessary costs are not imposed on these employers.”

The relaxation allows employers with fewer than 50 employees who find it difficult to report each and every payment to employees at the time of payment, to send information to HMRC just once a month to tie in with when they run  their regular payroll. Typically, this can reduce the number of required reports from up to 52 per year to 12.

According to HMRC figures, around one in six payments reported under RTI since the system came in in April 2013 has been made using the relaxation. In addition, 23% of the smallest employers are yet to report under RTI and may benefit from the relaxation.

Notes for editors

1.       In a statement issued today, HMRC said:

After listening to stakeholders, HMRC has today announced that it will be seeking to extend the temporary relaxation of the new reporting rules for businesses with fewer than 50 employees from October 2013 until April 2014, and that this relaxation will come to an end at this point. The extension means that businesses will not be required to change their approach halfway through the tax year.

HMRC also said:

HMRC is continuing to work with businesses over the coming months to identify whether there are any specific circumstances with on-or-before reporting that it needs to cater for in the longer term.

 

Full text of statement: https://www.gov.uk/government/news/record-numbers-of-employers-report-paye-in-real-time

 

2.       The Chartered Institute of Taxation


The Chartered Institute of Taxation (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 16,800 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’, to represent the leading tax qualification.


George Crozier
External Relations Manager

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The Chartered Institute of Taxation
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www.tax.org.uk

The Association of Taxation Technicians
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www.att.org.uk

Low Incomes Tax Reform Group – an initiative of the Chartered Institute of Taxation
www.litrg.org.uk

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