Motor trade accountancy firm ASE is warning that many dealers are unaware of important changes to PAYE due to take effect next month.
It quotes a recent study by the Association of Accounting Technicians (AAT) showing that 35% of SME’s have no knowledge of the overhaul to the PAYE tax system, which is mandatory to all employers from April 2013.
The message is: Get prepared for Real Time Information (RTI) now, as non-compliance means penalties will be issued.
One of the major changes affects the submissions of employees’ details to HMRC regarding payments and deductions.
Currently supplied at the end of each tax year, individual employee information will have to be supplied on a daily, weekly or monthly basis dependant on the frequency of payments.
Bett Twiggs, personal tax manager at ASE, commented: “These are the most fundamental and far reaching changes in over 60 years.”