Last week we heard about a study indicating that as many as 4 in 5 businesses were unprepared for the introduction of Real Time Information (or RTI). With RTI’s April launch rapidly approaching another study, this time from the Federation of Small Businesses, has reinforced these concerns. The results suggest that a quarter of the Federation’s members are still totally in the dark about the changes, with just 16% reporting they are in any fit state to comply.
Given the launch is now less than two months away, that’s not the most promising collection of stats, yet still HMRC insist that the RTI programme is ‘going well’ and ‘on track’. Presumably they mean on the basis of the penalty fees they’re planning to collect.
Keen to give SMEs a gentle nudge and remind them of their responsibilities, HMRC this week sent out over 1.5 million letters to employers, essentially giving them a swift kick up the backside to get RTI compliant.
Considering that it’s been billed as ‘the biggest reform in business tax for 70 years’, it’ll probably pay to know your RTI onions sooner, rather than later.
As a reminder – sole traders needn’t worry about RTI, but limited company freelancers will need to be compliant! Speak to your software provider or accountant to make sure.
Photo by Alon