Relax…just do it…HMRC extend RTI relaxation rules for micro businesses

5 years ago

Neilson Watts (Associate Product Manager, Sage One Payroll)By Neilson Watts (Associate Product Manager, Sage One Payroll).

It came from above with the seismic wallop of Thor’s Hammer and introduced quicker than Superman trying to out run a speeding bullet…it looked like there was no way you could out jump RTI (Real Time Information) with a single bound.

It was originally by April 2013 that HMRC wanted every business in the UK to start submitting PAYE returns on or before they made a payment to an employee through their payroll i.e. if an employee was paid weekly, then they would need to submit RTI returns every week they run a payroll.

By March 2013 a slight tingle in our spider senses established that HMRC were looking to relax the RTI rule for small businesses with less than 49 employees (well some of them)…

So what did the original relaxation mean?

From the HMRC website:

‘HMRC recognised that some small employers (employing less than 49 employees) who pay employees weekly (or more frequently), but only process their payroll monthly may need longer to adapt to reporting PAYE information in real time.

Although you are still required to submit RTI returns, the relaxation enabled small employers (until 5 October 2013, which was then subsequently extended until April 2014) to send information to HMRC by RTI by the date of their regular payroll run but no later than the end of the tax month (5th).’

RTI success followed with a package of help for micro businesses…

In recent weeks, HMRC have shared with us that 99% of PAYE records (with almost 93% of employers and nearly 99% of employers employing 10 or more employees) are already successfully reporting their PAYE returns in ‘real time’ and that most find the new system easy to use.

In efforts aimed at helping micro businesses, HMRC have announced a narrowing of the existing relaxation to those employing 9 or fewer employees. These employers will now have until April 2016 to submit RTI returns every time a payment is made, but between now and then they can send information to HMRC by RTI by the date of their regular payroll run but no later than the end of the tax month (5th).

It’s great to see HMRC looking at how they can help micro businesses but the message remains the same – don’t ignore RTI…you need to be doing it now!

For more information on this relaxation see PAYE Real Time Information: package of help announced for micro employers

So what is Sage’s stance on relaxation?

If you look up and define ‘Relaxation’ on Google, for some businesses there is some irony in the two responses. Which one best fits? It’s up to you!

  • “The state of being free from tension and anxiety”
  • “The action of making a rule or restriction less strict”

One thing Sage One Payroll customers know is that we’ve made RTI brilliantly simple so they are completely free from tension and anxiety….i.e. RELAXED.

Sage One Payroll is RTI-ready and in just 4 steps you can run a payroll quicker than you can hard boil an egg from just £5 per month. Try it now for free!