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Payroll - are you ready for Rti?!

Over the next few months, HMRC will be writing to all employers to tell them about forthcoming changes to the PAYE system.

The changes, said by many to be the biggest for 60 years, will essentially mean that employers will report employment and payroll information to HMRC on a monthly basis instead of yearly as they do now. Employers will also have greater responsibilities for reporting and managing information.

The changes will affect every business operating a payroll, irrespective of size. Clearly larger organisations will have greater resources to deal with the changes and many are already making plans to accomodate the new systems.

Smaller businesses will undoubtedly find it more diificult to cope and will rely on the expertise and knowledge of advisers. It is expected that many such businesses will decide to outsource the payroll function rather than invest in the time and software likely to be needed. We are inclined to agree with this, but would urge all business owners to start looking at this area as soon as possible.