HMRC extends RTI deadline for micro employers

HM Revenue and Customs (HMRC) has extended the time micro employers are allowed to report pay-as-you-earn (PAYE) in real-time.

Organisations with nine or fewer employees will be allowed to report PAYE information on or before the last payday of the month, rather than every payday until April 2016, to help them adapt to real-time information (RTI) reporting.

HMRC has also offered a package of support to help micro employers, which includes:

  • Improved guidance, such as best-practice scenarios.
  • Technology to develop new ways to report PAYE information on or before the date employers pay their employees, for example, by exploring the use of mobile applications.

HMRC announced in June 2013 that it was seeking to extend the temporary relaxation of RTI reporting deadline for micro employers.

Ruth Owen, director general for personal tax at HMRC, said: “The vast majority of employers are now successfully reporting PAYE in real time and are finding it easier to do this than they expected.

”But we appreciate that for some micro employers it has presented challenges for them to meet the deadlines.

“This package strikes a good balance by ensuring RTI improves PAYE processes while minimising the impact on micro employers and their agents by giving them up to two years to adapt.”