Tax advisers welcome HMRC's relaxation of RTI reporting by small employers - Press Release

Published on 19 March 2013

The Chartered Institute of Taxation (CIOT) and LITRG welcome the announcement today by HMRC, that it is making a significant relaxation to the Real Time Information (RTI) PAYE reporting requirement for small employers for a limited period.

From 6 April 2013, under RTI most employers will be required to report details of payments made to employees to HMRC on or before the time of the payment. The relaxation will apply to those smaller employers with less than 50 employees.

CIOT President Patrick Stevens said:

“The relaxation demonstrates that the Government has listened to the concerns of employers, their agents and the organisations that represent them.

“This follows constructive dialogue between numerous professional and trade bodies, led by CIOT and LITRG, and government. It is the culmination of many discussions that we have had over a number of months with various Ministers, other MPs and Peers, and officials.”

The change will permit employers with fewer than 50 employees who find it difficult to report every payment to employees at the time of payment, to send information to HMRC on the date of their regular payroll run but no later than the end of the tax month (5th).

Anthony Thomas, Chairman of LITRG said:

“We welcome the initiative by HMRC, with the DWP’s support, to adapt the RTI programme to suit the needs and capabilities of small businesses. This will now allow many small businesses, which might have struggled with RTI, to use it with minimum disruption. Permitting employers to report slightly later, when they complete a normal monthly payroll process, rather than requiring them to do so on or before the payment, is welcome.

“Everybody understands that RTI needs to work well, not just to eradicate avoidable mistakes from the PAYE system, but to help Universal Credit be responsive and sensitive to the needs of claimants. We know that small and growing businesses will bear the major part of the cost and administrative burden of RTI. Giving small businesses some leeway at least over the next few months is good news. The Government is showing its willingness to understand how best they can assist in relieving the pressures on that important sector of the economy.” 

Patrick Stevens continued:

“By October 2013 we should have a clearer idea of what concessions small business will require for RTI to work effectively for the good of all. And then we can have a sensible dialogue with ministers and officials about how to build what we have learned into the design of RTI and universal credit in future.

“Working together with our members and other organisations in this has been crucial to gaining a better understanding of the issues and demonstrating the problems employers are encountering in adjusting to RTI. We intend to continue to play a significant role in bringing the various parties together going forward so that we can ensure that the voices of employers and their agents are heard within HMRC and DWP.”

The announcement on RTI can be found on HMRC's website here.


Contact: Robin Williamson (please use form at

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