Accountancy firm Mitchell Charlesworth is urging businesses to prepare for the major changes in payroll law that will take place in April 2013.
Real Time Information (RTI) is being introduced by HMRC in April 2013 to improve the operation of Pay As You Earn (PAYE).
HMRC has published a consultation document on the penalty system for non-compliance – opening businesses up to large fines.
Joanne Nieman, payroll manager at Mitchell Charlesworth, said: “The new RTI system is due to come into effect next year and if firms are not careful it could be a nasty banana skin. Our strong advice is that firms give themselves enough time to prepare. Our main concern is that leaving this too late could prove time consuming, costly, and disruptive especially for small to medium sized firms.
“It is important to note that the transition to RTI will be mandatory for all employers and failure to comply will result in fines. We are looking to support employers so they understand their new responsibilities and take the right action to prepare for the change.”
The latest proposals from HMRC could see a minimum fine of £100 per week for each late or non-submission per 50 employees, with penalties increasing depending on employee numbers and the duration of a late submission.