NEW regulations about how staff payments are registered with HMRC will create an additional bureaucratic burden for businesses, a payroll specialist has said.
The start of PAYE Real Time Information (RTI), which takes effect from April, will create time-consuming red-tape for enterprises just when they cannot afford to be diverted in the tough economic climate, according to Sue Espiner, head of payroll at JWPCreers.
Under RTI, a business’s accountant, bookkeeper or payroll service will be legally required to send details electronically to HMRC every time payment is made, rather than doing so in one total at the end of the year.
Although HMRC says RTI, which is designed to provide accurate wages and tax records for the forthcoming universal credit scheme, will increase efficiency and reduce end-of-year pressures, Ms Espiner – whose department handles 3,500 payroll payments every month – says it will be “a bureaucratic headache” for enterprises trying to focus on sales and business development.
“RTI is a burden on employers and they need to get ready now,” she added.
RTI will mean that all businesses have to “cleanse” their payroll data to comply with new requirements, invest in updates to payroll software and keep abreast of updates and changes to RTI through the HMRC website.
JWPCreers, which has offices in York and Selby, is holding a free breakfast seminar to advise businesses on how to prepare for RTI at The Parsonage Country House Hotel Escrick, York, on February 7 at 8.30am. To book a place, email email@example.com by January 31.