According to HM Revenue & Customs, companies employing more than 5,000 people will not have to join the real-time PAYE scheme when it is rolled out in April 2013.
HMRC has recently confirmed that these companies will be able to arrange a personal ‘migration’ date when it comes to transitioning to the Real Time Information (RTI) PAYE scheme.
According to HMRC, the amount of error and fraud should decrease significantly due to the new system. The department also has the expectation that there could be as much as a £300 million reduction on employer burden once the entire economy has joined RTI.
However, many business owners have lamented the extra red tape they now need to cut through on every pay period instead of just once at the end of the year.
The ability for larger firms to schedule their join date for RTI stems from a Parliamentary commission this past July that expressed concerns about the costs of the programme and whether April of 2013 would provide enough time for companies with a large number of employees to prepare.
Groups exempt from online filing altogether include practising members of religious societies or orders whose beliefs are incompatible with the use of electronic methods of communication.
Also, people employing someone who provides care or support services at or from their home are exempt, as long as the care of support services are provided to the employer or to a member of their family and the recipient of the services has a physical or mental disability or is elderly or infirm.
In addition, the employer cannot have received a tax-free payment n respect of online filing in the past three years and the employer must be filing their return themselves, not having someone else, such as a relative or accountant, file it on their behalf
As an accountant, Simon Denton specialises in providing PAYE advice, support and guidance.