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Many SMEs still have no clue about coming PAYE changes

An accountancy firm based in North Yorkshire has recently warned that all too many SMEs still have no clue whatsoever about the coming real time PAYE changes.

The new Real Time Information system, which has been categorised by one of the largest ever overhauls of its kind in the history of Pay As You Earn tax reporting, is guaranteed to have an affect on every single employer in the UK both large and small, experts say. Designed to ensure that Her Majesty’s Revenue and Customs receives payroll details from employers either prior to or at the time of every earnings payment to an employee, RTI combines payment and payroll processes into one cohesive unit – and goes into effect this April.

A representative from the accountancy firm, Sally Thomas, commented on the new RTI requirements, pointing out that employers will now have no choice but to comply with the legal requirement of submitting an electronic payroll data return to the taxman at the point of payment. Gone will be the days of simply submitting an annual return, said Ms Thomas, who added that the level of detail that will now be required for each and every employee.

Businesses will now have the responsibility to know the name and address of each employee in addition to their National Insurance numbers and their dates of birth. The number of each employee’s working hours – in bandwidths – per their contract, and any employer that has up until now been making use of casual labourers and making anonymous payments will now have to formalise their employment.

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