Posts in Category: RTI

RTI 'Needless' Say SMEs 

Many small businesses are yet to see any benefit from Real Time Information (RTI), with a third deeming it "needless", a survey has found.

The poll of 2,000 small and medium enterprises (SMEs) by HW Fisher reveals that six months of getting to grips with RTI has left a significant number with negative experiences.

The accounting firm found that a quarter (23%) of respondents described RTI as "frustrating", while 31% thought the reforms were "needless" and almost half (46%) had enountered problems or were still trying to address those issues. 

While nearly a third (31%) of the SMEs said their view of RTI was positive, 39% of those polled admitted it had increased costs for their business with the majority (61%) seeing a rise of up to 5%.

Toby Ryland, a partner at HW Fisher & Company, said: "It's clear from our research that the move to RTI has caused many small businesses difficulties, during a time when they would have preferred to have been fully focused on the very rough trading environment faced by most firms."


Posted by Gary Wilson Wednesday, September 18, 2013 12:53:00 PM Categories: News RTI

HMRC Finally Addresses RTI Misbalanced Submissions 

A RTI problem solving team has been set up by HMRC to investigate why in some cases there is a dispute over the amount of PAYE owed between payroll managers and the Revenue.

HMRC is currently unable to explain why the figure it expects from some companies differ from what the payroll departments think is owed - and the new Revenue team has been given the specific role of identifying the cause of the discrepancies.

In August, Simon Parson, head of compliance at Ceridian, said: "Having personally checked four separate HMRC Debt Management and Banking division claimed misbalanced PAYE scheme submissions from April through to June, it's clear to me that not all is well with RTI."

An HMRC spokesman explained that the Revenue is working with a number of schemes to understand the problems.

"This will enable us to understand the issue in greater depth, and take the steps necessary to prevent them arising in the first place. Each time we identify a root cause, we will update our guidance, where appropriate, as soon as possible," he said.

Posted by Gary Wilson Wednesday, August 28, 2013 9:17:00 AM Categories: News RTI

HMRC: "It is important to record the correct number of hours your employees have worked" 

HMRC is urging payroll to be careful when reporting the RTI hours worked field so staff do not miss out on any benefits owed to them.

Of particular concern to HMRC is the tendency by some employers to mistakenly use the 'other' field rather than select one of the banded-hours options.

An HMRC spokesman said: "It is important to record the correct number of hours your employees have worked to help ensure that they receive the right amount of benefits and tax credits they are entitled to."

For the RTI project to work successfully, the tax department stresses that use of the 'other' field is intended only for individuals with an irregular pattern of employment or where the payment relates to an occupational pension or annuity.

The Revenue is also reminding employers, where staff are paid on a quarterly basis, that it is now time to make their first RTI submission of the current tax year.

Posted by Gary Wilson Wednesday, July 17, 2013 8:53:00 AM Categories: News RTI

RTi Costs Businesses Double What The Government Predicted 

The cost to businesses of switching to Real Time Information (RTI) is double that predicted by HMRC, according to research by the Forum for Private Businesses (FPB).

Prior to its launch, the Revenue estimated the impact of RTI would require £120m spend by small businesses, but a survey of 4,000 members of the FPB puts the total figure at close to £311m. 

Robert Downes, FPB policy adviser, said: "Government number crunchers never seem to get their sums correct, so it's no wonder small firms are getting jumpy about the cost of pension auto-enrolment, which by its very nature is going to be hugely more expensive than RTI to set-up, deliver and also maintain."

The cost of compliance study by the FPB found that spending on tax compliance by firms has risen significantly since the study was last conducted in 2011.

"We believe this is largely down to RTI, and firms having to pay a payroll specialist to manage their employees' PAYE bills," said Downes.

"By contrast businesses are paying out slightly less on internal compliance managed in-house. The logic here seems to be to pay an expert to do a job they can no longer do themselves, for whatever reason that may be."

Posted by Gary Wilson Wednesday, July 10, 2013 9:30:00 AM Categories: News RTI
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