Last month the biggest change to the UK PAYE system in many years came into operation with Real Time Information becoming effective from 6 April 2013.

Many readers will already be aware that the change means employers must send PAYE information in real time i.e. ‘on or before’ the date payment is made to an employee (or pensioner).

HMRC also announced a relaxation of the reporting arrangements for small businesses recognising that some small employers who pay employees weekly, or more frequently, but only process their payroll monthly may need longer to adapt to reporting PAYE information in real time.

Until 5 October 2013, employers with fewer than 50 employees, who find it difficult to report every payment to employees at the time of payment, may send information to HMRC by the date of their regular payroll run but no later than the end of the tax month (5th).

HMRC advise that they will continue to work with employer representatives during the summer to assess and understand the impact of RTI on the smallest businesses and consider whether they can make improvements to real time reporting which will address these concerns.

Guidance on exceptions to reporting PAYE information ‘on or before’ paying an employee are available on the HMRC website.