Three ways to rev up for RTI guidelines

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Earlier this month, small businesses were given a modicum of breathing space when HMRC confirmed that it is extending the real time information (RTI) compliance deadlines to next March. While the initial deadline of October 6th this year still applies for companies with more than 50 employees, those with fewer now have an additional five months to get themselves in gear.

HMRC says that seven from every ten companies to have met the guidelines so far have said that it was straightforward, but this still leaves around a third who struggled, and it does not take into account those who have yet to do it. With small companies reportedly finding it tougher than large ones, the extension gives them more time to meet the demands of submitting PAYE info to HMRC no later than the day on which their employees are paid.

If your company is one of those finding this a challenge, here are three tips that may help:

1. Outsource your accounts

The obvious solution to easing up the time you are spending submitting information to HM Revenue & Customs is to allow a professional to do it on your behalf. By outsourcing finance and accounting, you can minimise the amount of time you and your team are spending in front of books and spreadsheets and free up hours to set business strategies and direct your company as you see fit.

Choose your accountancy provider carefully though, because the buck still stops with you should your company not supply PAYE information. At Sollertia, we’re happy to explain how we are RTI compliant.

2. Give yourself leeway

Obviously, employees are more likely to stay content if they receive their pay when they expect it, but there are ways to allow yourself a degree of flexibility. It’s a good idea to advise employees they will be paid “no later than” a certain date, be it the end of the month or the middle, as some companies prefer. Aim to pay them at least a few days before this, of course, but this will give you the time to sort out any hiccups without irking your staff.

3. Work closely with HMRC

Those four letters are not to be feared; HMRC would much prefer that company owners admitted they were struggling and got in touch, rather than missing deadlines or “winging it” to make them. The HMRC website is a good resource for RTI help, and offers several contact numbers through which any difficulties can be discussed.