With the deadline for Real Time Information (RTI) looming ever closer Julie Palmer, a partner at Begbies Traynor, has warned that the new system (coupled with HMRC's more "assertive" approach to tax debt) may tip some companies over the edge.
She is quoted in the Telegraph:
"We don’t know if there will be political pressure to support struggling companies or to be tougher on them and collect outstanding taxes. But what this will give HMRC is the visibility to spot arrears more quickly and to react more quickly.”She added that the change is “one of the most fundamental changes to the PAYE tax system since 1944”.
“At a time when businesses are already feeling the strain, the potential for quicker demands of additional payments could potentially push them over the edge."Additionally companies will need to invest in new payroll software, or update their current systems to comply with RTI; these costs have to be borne by the companies.
Alarmingly around 25% of companies recently surveyed are "blissfully unaware" that RTI is coming.
There will be tears before bedtime!
Tax does have to be taxing.
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