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Largest firms exempt from Real Time Information deadline

Her Majesty’s Revenue & Customs has recently confirmed that the UK’s largest firms will be able to arrange a personal ‘migration’ date when it comes to transitioning to the Real Time Information PAYE scheme.

The new PAYE scheme, designed with an eye towards more accurate tax information making its way to the taxman, will begin to be rolled out by April of next year and will effect some 6 million employees and around 250,000 employers. However, HMRC has given any company with more than 5,000 people on payroll an additional six months to join RTI at their leisure, allowing each individual firm the ability to schedule their own RTI start date any time between April and October 2013.

The amount of error and fraud should decrease significantly due to the new system, according to the taxman. HRMC also has the expectation that there could be as much as a £300 million reduction on employer burden once the entire economy has joined RTI, though there are many business owners that have lamented the extra red tape they now need to cut through on every pay period instead of just once at the end of the year.

The ability for larger firms to schedule their join date for RTI stems from a Parliamentary commission this past July that expressed concerns about the costs of the programme and whether April of 2013 would provide enough time for companies with a large number of employees to prepare. However, David Gauke, the exchequer secretary, disagreed quite strongly with the committee’s decision, insisting that the plans were both on budget and on time.

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