RTI: a Really Terrible Idea?
By now employers should have implemented RTI (Real Time Information) to report PAYE deductions for their employees. For some businesses the process has been relatively smooth. Others have faced a battle to get new payroll software to work, and to understand the new requirements of HMRC.
The problem was not really of the taxman’s making: RTI is a necessary requirement of the new Universal Credit benefits system which is already being rolled out across the country. However, judging by the number of last-minute changes and clarifications of the HMRC guidance (three of which are described in this newsletter), we can only conclude that RTI was not properly tested before being imposed on small businesses.
There were also two nasty surprises in the Budget relating to loans: one creates new pitfalls for inheritance tax, and the other may increase corporation tax payments for family companies that advance loans to family members. Both of these changes can be triggered by loans advanced well before Budget day, so please read the articles and talk to us if you are concerned that they might apply to you.
This newsletter describes these and other recent developments which might affect your tax affairs. The rules seem to become ever more complicated, and the risks of inadvertently doing something wrong and picking up a penalty increase every year. Whatever else happens, we will be keeping an eye on the changes and looking out for your best interests. If you need advice on tax, whether it’s personal or business, we’ll be happy to help.