Majority of SMEs unprepared for RTI

The Crunch survey also shows that 46 per cent have no knowledge of RTI, whilst a
further 35 per cent admit they are only vaguely aware of the forthcoming

Steve Crouch, Financial Director at Crunch Accounting said: “These new stats
clearly show that despite HMRC’s claims that their communications campaign
for RTI is on track, there’s still not enough information from the
government about this huge change to the payroll system.

“There’s still time to get organised, but small businesses should start
planning now. Small and medium-sized businesses need to be fully RTI
compliant by April 2013, so talk to your payroll provider if you’re unsure
or if they haven’t yet informed you about changes,” added Crouch.

The introduction of RTI aims to improve the flow of National Insurance and
tax information between HMRC and employers to keep records in real time.
Payroll information including salary, income tax and National Insurance will
need to be submitted monthly rather than annually, and will eventually
replace P35s and P14s.

The new RTI scheme will be a requirement for large businesses later this
year, but there will be eventual penalties starting in 2014 for all
businesses that are not RTI compliant.