LEADING North Wales accountancy firm Williams Denton is warning businesses to prepare for big payroll changes which could have huge implications for SMEs and the self-employed.
The call comes ahead of after HM Revenue and Customs announced the introduction of a new system requiring employers to provide monthly updates to the taxman.
The system, called Real Time Information (RTI), means that employers will have to send HMRC monthly details of how much each employee has been paid and how much tax has been deducted under the PAYE system.
RTI is the first major change since PAYE was introduced in 1944 and will be introduced for all employers from April 2013.
It means that employee information, including details of casual workers, must be accurate, submissions must be completed on time and HMRC will know how much PAYE and national insurance contribution is due at each pay date.
According to HMRC, the aim is to improve accuracy of the PAYE process but, Williams Denton have warned, it will also mean greater rigidity and a lot more paperwork for SME’s and self-employed people who want to claim tax credits.
Peter Denton, of Williams Denton explained: “The government is always saying that they are easing red tape and burdens on small businesses but then they keep coming up with more and more complicated ways of doing things.
“This new system has big implications for every employer and it also affect people who are self employed, if they want to claim tax credits, they will have to submit I would strongly advise them to get in touch with their accountant or advisor as soon as possible to find out how they can best prepare for these changes.”
Williams Denton, which has offices in Bangor and Llandudno, is a member of The Corporate Finance Network, a national network of accountancy firms that specialise in corporate finance for small and medium sized businesses.
Peter will be delivering a talk to the Federation of Small Businesses (FSB) at Bangor Management Centre on 13th March at 7pm.
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