Small firms lack IT resources to implement RTI
The Public Accounts Committee (PAC) has warned that small firms will struggle to implement Real Time Information (RTI) due to a lack of IT resources.
RTI will be mandatory for all companies by October 2013 but the PAC say HMRC needs to consider the impact RTI will have on small businesses.
In relation to a recent report on welfare reform plans the committee said:
“DWP and HMRC are designing a real-time information system for Universal Credit to reduce the risk of overpayments, with benefits being recalculated as soon as circumstances change.
“Both DWP and HMRC need to understand how the introduction of this system will impact on small businesses and the self-employed who may not have the necessary IT to administer it.”
The report identified that whilst 94% of employees obtain earnings electronically, the self-employed and small businesses without electronic payroll do not currently submit monthly data to HMRC.
HMRC has said that it is currently identifying how to best solve the issue – that affects approximately 1.5m people – but no detail has yet been given.
For more information please call Dave Connolly in the payroll department of McEwan Wallace Chartered Accountants on 0151 666 5940 or email enquiries@wallace.co.uk
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