PAYE real time information (RTI) is causing quite a debate among contractors and personal service accountants.
How is RTI working for you? Is it a huge cost or administrative burden? Have you been dogged by unanswered questions and uncertainty by the forever changing guidance issued by HMRC?
Just last week HMRC issued further guidance extending the relaxation to the ‘on or before’ provision for employers to send their RTI returns to HMRC that has been in place since April 2013 until 5 April 2014. This change will allow employers with 49 or fewer employees to send in their RTI returns by the end of the tax month in which they pay their employees.
The debate is lively, and the ICAEW has a dedicated RTI webpage which both carries formal help sheets and advice as well as a forum of members discussing the issues, and benefits they are experiencing. Impossible deadlines, software that doesn’t do what it should, RTI submissions not happening and HMRC’s helplines not being very helpful or understanding the issues have all been mentioned on the downside. Yet some report only positive experiences.
What has become clear is the importance of seeking good and timely advice on payroll matters. As contractors work in a competitive market place, to tight deadlines and often long hours the added burden is proving to be a strain. Using a dedicated contractor’s accountant has never been more important.
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