Quarter of small businesses ignorant about Real Time Information
According to a recent poll conducted by the Federation of Small Businesses (FSB) 25% of small businesses have not heard of Real Time Information (RTI).
Of the 1,700 small businesses that took part in the poll, only 16% were “fully aware” of RTI, with approximately two-thirds not confident that RTI will succeed.
One third of business owners believe that having to learn the new processes that RTI imposes will present a challenge to their business and 24% said that having to deal with related HMRC enquiries would also give rise to difficulties.
With implementation of RTI less than 6 months away (April 2013), 60% of companies said that they had received no communication from HMRC regarding the changes. HMRC however only began intensifying their RTI communication drive a few weeks ago as they believe that the optimum time to engage with employers is six months before the due start date next April. As well as distributing 1.4 million letters to employers, the Revenue's campaign also includes advertising, regular live Twitter Q&As, YouTube videos and roadshows across the UK. It will not only target employers of all sizes but also payroll bureaux, accountants, professional bodies, software providers and other representatives and industry groups.
The concerns of SMEs however were recently shared by a Treasury Sub-Committee session on the administration and effectiveness of HMRC which alerted them to “enormous problems” with the RTI programme. Both witnesses and members of the committee expressed concerns over the timescale to smooth out any problems, as well as SMEs ability to cope with filing on time each month and having to do this electronically.
John Walker, National Chairman of the FSB, voiced his doubts about RTI and said:
"With only six months until RTI is due to be implemented, the FSB has real concerns that not enough businesses are aware that it is just around the corner. This system is linked to the Government's flagship Universal Credit scheme and we're concerned that it could flop if Government does not step up its game in communicating the changes.
"There are a number of steps that a business must complete before they can provide Real Time Information to HMRC so it is critical that those affected know about it. Of the very small number of firms that are aware of the change, 30 per cent have had to buy new software for their business. HMRC needs to act now so that all small firms can prepare their business as they only have six months in which to do it.
"Without adequate communication and education from Government, small firms won't be able to prepare. It just isn't fair if they're then penalised for not complying."
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