RTI changes boost firm’s payroll service
Moore and Smalley Chartered Accountants and Business Advisors has picked up more than 60 new payroll clients as result of Real Time Information (RTI) which came into effect at the beginning of April.
The firm has also recruited three new payroll staff to cope with the increased workloads taking the team to 12 members.
RTI has been described as the biggest shake-up to the payroll system in decades and sees companies having to submit PAYE information to HM Revenue & Customs (HMRC) in real time, or each time they pay their staff, rather than annually as they did before.
Margaret Merrifield, head of payroll services for Moore and Smalley, said: “RTI has been designed to make the PAYE process simpler, but it has required businesses to get new software to be able to file the information in the right format. Many companies have seen this as an unwanted worry and have turned to an outsourced solution to free up time and ensure they get it right.
“Penalties for late filing and errors are not being introduced until next year, but businesses are under pressure to get it right. We’ve seen many firms moving from a weekly to a monthly payroll just to reduce the administrative burden.”
A poll conducted in April by Moore and Smalley found that over two thirds of businesses were not prepared for the introduction of RTI.
Margaret added: “With many firms also due to be affected by auto-enrolment pensions in the coming months, SMEs are under increasing pressure to comply with legislation. They need to plan effectively to ensure these changes do not impinge upon day-to-day business.”