PAYE RTI News
Failure to prepare for RTI may result in unpaid employee welfare credits
February 26, 2013
Small business employees may lose out on future welfare credits if their employers fail to prepare for RTI, a senior representative of Sage the leading UK software provider commented yesterday.
The comments by Lee Perkins, managing director of payroll software provider Sage’s small business division, were reported by Payroll World, the leading payroll industry publication.
Lee Perkins commenting on the FSB’s call for HMRC to revise its planned implementation of PAYE Real Time Information reporting, told Payroll World that FSB’s calls are likely to go unheeded because RTI is being introduced to make possible the government’s flagship Universal Credit welfare reform programme.
Payroll World reported him as saying, “I can fully understand the concerns raised by the FSB and its members with regards to making the switch now, but the reality is that there never is a good time to implement such significant changes”.
“Without the benefit of a crystal ball I can’t say it would be better to delay by 12 months or to carry on. What I can say from our experience is that if approached in the right way, there is no need for RTI to add to the administrative burden for business.”
Regardless of a company’s size, Perkins was reported as saying that preparation is vital.
“For businesses that don’t make the time to set themselves up right from the outset, RTI could become quite painful, but the impact will be more keenly felt by employees who may not receive the benefits they are entitled too,” he concluded.