Orange & Gold Blog

RTI small business concession

RTI rules relaxed for small businesses

A concession for small businesses, such as freelance contractors, has been made over the timing of the new RTI (real time information) reporting.  Many contractors and freelancers are concerned about RTI, particularly those working without the assistance of a contractor accountant. The concession is the result of efforts made by several accounting bodies who continue to be concerned about the impact of RTI.

The change will allow small businesses reporting until 5th October 2013 to make submissions under RTI when they complete their main payroll run.   This is provided that it is on or before the 5th of the month (the last day of the tax month).  This electronic submission could be made after payments have been made to employees.

This is a change to the requirement that a full payment submission (FPS) is filed electronically to HMRC before payment is made to employees.  Also, an employer’s payment summary (EPS) must be made if statutory payments (for example maternity pay or sick pay) to HMRC are made.

HMRC hope that this relaxation for small businesses will allow them breathing space until October to understand fully the new system.