November 2015: RTI relaxation for small businesses coming to an end
Under the new Real Time Information (RTI) rules which became applicable for businesses in April 2013, the HMRC recognised that employers that have 50 employees or less needed more time to get to grips with the system. This also applies for small businesses who need to pay their staff on a more regular basis (a few times a week or weekly) and yet only process payroll monthly.
The relaxation period is now coming to an end, with small businesses needing to comply with the RTI obligations from April 2014 or face penalty fines.
The scale of fines is as follows:
- 1-9 employees – £100
- 10-49 employees – £200
- 50-249 employees – £300
- 250 or more employees – £400
This includes annual schemes.
If you do get a fine, you are able to appeal in two situations: a reasonable excuse or special circumstances. Although in the large majority of cases, a successful appeal by an employer is rare.
Now is the time to act, don’t leave it until the last minute. Get your payroll organised and set up for RTI before you face any fines.