New problems for hard pressed SMEs
The Institute of Chartered Accountants in England and Wales (ICAEW) has warned that the new PAYE system, Real Time Information (RTI) will create new problems for hard pressed SMEs.
I understand that the scheme, which launches in April 2013, will mean that businesses will have to report PAYE transfers when, or before each payment is made. Despite HMRC amending the rules so that if it is impractical to do so, companies will have up to seven additional days to report the payment, the ICAEW believes that the new rules will prove difficult for some to administer.
Frank Haskew of the ICAEW said:
The ‘on or before’ rule, even as amended, completely ignores the way the real world works. It will add significantly to compliance costs and burdens for many small and medium sized businesses.
