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Awareness of the forthcoming real-time information (RTI) system is growing among small firms, according to the Forum of Private Business (FPB), but many are “still ignorant and unaware”.
The results of members’ survey show that many employers understand the implications of the PAYE revamp set to be launched by HMRC in less than two months’ time, and two thirds know what is expected of them.
But the FSB believes a worrying number are still in the dark. The business support organisation’s chief executive, Phil Orford, said, “Real-time information is looming and, while our research suggests there is a growing understanding of what this means, there is a significant number of firms that are still ignorant and unaware”.
The study also uncovered a lack of trust employers have in the Revenue to cope with the changes: 65% of respondents expressed concern.
“If nothing else, this paints a depressing picture of small firms’ confidence in a government department that is key to their operations,” said Orford. “The businesses involved with the RTI pilot… were a little more confident, but there are clearly still fears about how seamless the transition will prove to be.”
Many FSB members have questioned the benefits of RTI: barely half said they did not see any benefits, while one in five felt the scheme would make them less likely to take on employees.
Phil Orford called on the taxman to adopt a “sensible and reasoned” approach towards enforcement in the early stages of the new PAYE set-up.
He added, “The government has announced the delay to some fining powers, but the effect of the switch to online reporting must not be underestimated, nor the cost of investing in new software ignored. Ideally, we want to see a moratorium on fines in all but the most serious cases.”
HMRC are writing to more than 1.4m employers to remind them to prepare for RTI. The letters include a checklist of the key steps necessary before 6 April.
