The proposal to require filing of an RTI return (and therefore run the payroll) on or before making a payment to employees would create a significant administrative burden for employers. A better solution would be to require a single monthly RTI transmission ideally to coincide with the PAYE payment date.
The tax information and impact note ‘Real time information (RTI): improving the operation of pay as you earn’ issued on 15 March 2012 makes an astonishing claim. It says that ‘RTI aims to reduce administrative burdens for all employers including small employers (upon whom the current burden of PAYE currently falls disproportionately)’. That is a laudable aim but the simple fact is that RTI will require many small employers to run their payrolls more – not less – frequently. Quite how that is supposed to reduce the...
