Real Time Information Reporting
Will it push your client over the edge?
As you will be aware, RTI reporting comes in to affect next month. No longer will you be required to submit your client’s P35 annual return once a year by 19th May. Instead, you must submit your client’s payroll information on or before the day they pay their employees.
In our experience, many of our clients, struggling with cash flow, have funded their trading by not paying over their PAYE/NIC on time. Potentially HMRC would not know of the unpaid tax until the P35 is submitted at the year end. With these new regulations however HMRC will now know in “real time” what PAYE/NIC should have been paid over.
How quickly will they now identify that tax due has not been paid over?
Will this mean that HMRC will be moving more swiftly to enforce winding up proceedings against the slow/non payers?
We would be interested to hear your views and any client experiences as these regulations come into affect.