Small companies given time to file tax returns
21 March 2013
With effect from 6 April 2013, most employers with less than 5,000 employees will join Real Time Information (RTI), alongside those employers already taking part in pilot schemes. They must report details of payments and various other prescribed information to HMRC, on or before the time a payment is made during any week or month.
Mark Groom, tax partner at Deloitte, said: “These rules will now be relaxed for small businesses. In a pre-Budget announcement made yesterday, HMRC confirmed that employers with fewer than 50 employees would not have to file returns at the time of making payments. They will instead be given until the date of their normal payroll run - but no later than the end of the tax month (5th) - to submit a single return for all payments in the month concerned.”
This relaxation will initially apply for six months until October 2013.
Groom continued: “Any step to help small business is welcome and this follows other sensible relaxations for bigger businesses with more complex off cycle payments and reward structures including in relation to internationally mobile employees and share schemes. However, we think a single end of week/month return would suffice for all employers and we suggest it should continue after October.”
Notes to editors:
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities.
Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
Member of Deloitte Touche Tohmatsu Limited