Upcoming payroll changes will cause a headache to unprepared local firms.
From April, small businesses in the North East area will have to report pay as you earn (PAYE) information to HMRC in real time.
Employers (or their accountant) will have to:
·Send details to HMRC every time they pay an employee, at the time they pay them
·Use payroll software to send this information electronically as part of their routine payroll process
Federation of Small Businesses’ (FSB) polling at the end of 2012 showed that one third of our small employers knew nothing or very little about these changes.
Whilst we have raised concerns with HMRC and the Government, we also believe that firms should ensure they keep themselves on the right side of the law. With less than a month to go until these changes come into force, we would urge firms to look up the HMRC website or visit http://www.hmrc.gov.uk/payerti/
North East Branch Chair
Federation of Small Businesses