UK Businesses Protest New Tax Filing System
April 9, 2013 Taxation in UK
LONDON – The UK’s latest tax filing innovation has gotten off to a shaky start with owners of small businesses around the country rasing objections to the new system within hours of the beginning of its operations.
Over the weekend the HM Revenue and Customs launched its new Real Time Information (RTI) system for reporting employee wages and tax obligations, but almost immediately the technology was affected by technical glitches, and now employers across the country are labeling the system as being overly difficult to use and burdensome for businesses.
The RTI requires employers to provide the HMRC with current information on employees’ pay rates, as well as information on their Pay As You Earn (PAYE) status, national insurance contributions and student loan repayments.
Right now all businesses in the UK with less than 50 employees have been granted a grace period whereby the RTI submissions must only be made once a month, but the full real-time filing requirement will be enforced from the start of the coming October onwards.
On the the first day when the RTI system went live employers trying to make a submission were met with errors and were unable to fulfill their filing obligations.
Sage, one of the development teams behind the RTI system, has already indicated that technical assistance needed to be provided to 18 807 small businesses which were affected by the errors.
Following the weekend launch the HMRC has already come forward and acknowledged that it may have underestimated the filing burdens that small businesses will face under the new scheme, and indicated that over the next few months the RTI will be monitored to accurately gauge the true work that will be required by business owners trying to comply with their new filing obligations.
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