.png)
.png)
Most employers across the UK will this month receive a letter from HMRC as the department prepares for the full launch of real-time information (RTI).
Key points of the biggest revamp of the PAYE system in decades will be outlined in the taxman's note, which will be sent to all employers and pension providers not taking part in the RTI pilot scheme.
The new system will be standard for the majority of organisations by October 2013. But, while most of the largest employers are gearing for the change, many small and medium-sized enterprises (SMEs) are “likely to be blissfully unaware of this radical change”, warned Steve Wade, employment tax director at KPMG.
He said, “If SMEs have up-to-date payroll software, hold current and accurate employee data, and their software provider is gearing up for the more to real-time reporting, then they may find the transition is smooth – but if not, they are likely to face significant problems complying and may incur penalties.”
Wade went on to urge all organisations “to get their heads around what the move to RTI reporting means for them and how they are going to comply with the new rules”.
Next month will see the closure of schemes the Revenue believes have stopped operating PAYE. Tax officials will write to affected employers to explain what to do if the scheme has been closed in error.
