HMRC change RTI goalposts

HMRC Delay RTI For Small Business

Ray Stewart Business, Tax Matters Leave a Comment

HMRC Mess Up RTI implementation!

Yesterday HMRC announced they have “agreed” to delay the introduction of Real Time Information (RTI) for employers with less than 50 employees.

HMRC say they recognize that some small employers who pay weekly, or more frequently (?), but who only process their payroll monthly may need longer to adapt to RTI reporting.

So, employers with less than 50 employees will have until the 5th October 2013 before they are required to operate their payrolls in real time but are (generously) allowed to use RTI if they want to.

What this really means to Small Business

I think we can read between the lines here and see that it is really HMRC who are not fully ready for the huge number of small business employers who are (were until yesterday) expected to start RTI on the 6th April 2013.

This is a big acknowledgement of the pressure they have put on small business by forcing this payroll change on all employers purely to suit their benefit changes schedule for October 2013.  However, I think this has come too late to benefit anyone and can only cause big problems in October 2013 when businesses who try to put off the inevitable until the last moment try and adapt to the new requirements half way through a tax year.  What a mess!

HMRC have announced they will work with employer representatives during the summer to understand the impact of RTI on the smallest business and consider what “improvements” can be made to real time reporting.

Bet they don’t ask me!

The fact is HMRC put such a huge amount of pressure on every employer in the last few months to get us all ready for RTI and as far as I can see, all employers – all my clients at least – are completely ready for RTI so that joining the system now will make absolutely no difference to anyone.  The transition will be completely seamless.

It is HMRC Who are not ready for RTI

So, I am very baffled by this announcement on the day of the budget, and also the day the HMRC employees were on strike – at Saxon House in Leicester at least!

Who is it that isn’t ready for the 000’s of employers starting the RTI system in a couple of weeks?  Not us George!

No doubt this announcement will be welcomed by the hardened few that resist any change purely for the heck of it but the simple fact is that investment in a really cheap payroll software program will cover all the requirements with a few mouse clicks each week or month.

If you are one of those who are still having problems or still have unanswered questions about RTI and what needs to be done, please ring me asap on 01530 223373 and I will be happy to help.  I really don’t think it is a good idea to change things in October part way through a tax year so aim to start on the 6th April 2013 and be happy to help crash the HMRC system from the start – because they are clearly not ready for us!


Ray Stewart
I am a qualified Certified Practising Accountant having passed my final exams way back in 1981. I actually can’t believe that was 37 years ago!! Anyway, I am now in my 60’s and I have been running my own business since May 1983. And before you ask, no, I have never regretted a moment of it! Part of the membership requirements of my professional body now dictate that I spend quite a lot of time on “CPD” - continuing professional education (one of their better ideas) - and over the last two years I decided to study business growth and marketing. I have learnt such a lot and that knowledge has radically changed my old “accountants” approach to business. It has made such a difference to the way I work and operate I feel that I just have to pass on this knowledge. It is simply too powerful to hold back!! - but I will try and do it in simple terms rather than expecting you to spend hours, as I had to, working through the difficult language that trainers seem to use to pass on their concepts. I hope you find the blog a useful resource and interesting place to visit as the months pass. I will do my best to keep up the flow - but if there are any topics you would like me to cover, then please let me know. Ray Stewart
Ray Stewart
Ray Stewart

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