Now that the new payroll legislation comes into force for every business, many small companies face the prospect of fines as they struggle to get to grips with reporting Real Time Information (RTI) to HMRC.
SME’s still not RTI compliant
HMRC has already started writing to non-compliant businesses – believed to be around 100,000 businesses – threatening them with fines if they fail to achieve compliance.
From 6th April SMEs will need to make sure that every submission of payroll information – the pay and details for each employee is accurate, on time and up to date.
Yet HMRC has been accused of not doing enough to help SMEs make sure they’re compliant. In December 2013, Margaret Hodge, chair of the House of Commons Public Accounts Committee, expressed concern about the impact of RTI on smaller business.
Paul Lancaster of Sage One marketing team, said: “These fines are a completely unnecessary expense for small businesses as RTI is really quite a simple thing to do, especially with RTI compliant software like Sage One Payroll.”
Software – the simple solution for small businesses
Fish and chip shop owner, John Moore, has found with the introduction of RTI and using payroll software the task is easier than it was before!
In an interview with BBC Breakfast the owner of Fryer Tuck’s fish and chip shop said: “I used to have a spread sheet and staff would give me their hours. I would then go down through the spread sheet, work out their National Insurance and income tax, which I would then have to put in the account and then once a quarter file that to HMRC and pay the money across. Now I go to the computer and put in the hours and push the button, and it works. It does it for me. It’s brilliant!”
“I’m not aware of how the Government see the RTI reporting to be better for them, but it certainly saves me time. Rather than 3 months doing it manually; every week, I put in the wages and press the button – and it’s filed. Done!”
Are you RTI-ready like John?
If you haven’t been submitting RTI since 6th April 2013 you may at risk of a fine – don’t panic! We can help you get set up and compliant quickly and easily with Sage One Payroll.
To see how simple it can be, start a free trial of Sage One Payroll today.