There’s nothing like a deadline to concentrate the mind, so I’m giving you plenty of notice that changes are afoot to the PAYE system.
From 2013, employers will have to provide information on PAYE and National Insurance to HMRC at the point of paying employees, rather than at the year end. The new system – PAYE Real Time Information – will be piloted next Spring with a view to it being implemented the following year.
It will be mandatory for large businesses to operate the new system from Spring 2013 – with all employers expected to implement the changes by October 2013.
A recent survey conducted by Sage suggests the majority of small businesses are not doing anything to prepare for the new system. In fact, over three-quarters of companies surveyed were completely unaware of the planned changes.
2013 may seem like a long way off – but it’s not too early to start thinking about how PAYE Real Time Information will affect your operations. If you outsource your payroll, for example, you will need to check what plans your software provider has in place to take account of the changes.
Those who start thinking early about the impact it will have on their systems and procedures will be best placed to minimise disruption and make a smooth transition to the new arrangements when the time comes.