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Firms ‘unaware’ of payroll changes

Firms ‘unaware’ of payroll changes

A quarter of small businesses remain completely unaware that sweeping changes to the way they report their payrolls will be introduced in six months’ time, a new survey has revealed. A meagre 16% of small companies had a complete picture of the new Real Time Information (RTI) payroll programme, while 25% had not even heard of it, according to research by the Federation of Small Businesses (FSB).

RTI is a new programme designed by HM Revenue & Customs to help employers collect more up-to-date information on their employees. The new system is intended to simplify the process of reporting new starters and leavers, support the payment of Universal Credit when it is introduced next April, and streamline the entire payroll procedure. RTI appears to have received a lukewarm welcome from the small business community though, with two thirds (66%) of those quizzed doubtful that the new programme will achieve its aims.

John Walker, national chairman of the FSB, said:

“With only six months until RTI is due to be implemented, the FSB has real concerns that not enough businesses are aware that it is just around the corner. “This system is linked to the Government’s flagship Universal Credit scheme and we’re concerned that it could flop if the Government does not step up its game in communicating the changes.”

IBB’s Employment Team provides advice on the employment aspects of all major business decisions. To contact a member of the team for advice, call us on 01895 207892 or email employment@ibblaw.co.uk