Welcome to the July 2013 Newsletter from Connolly Accountants & Business Advisors

Following concerns about the potential impact of the Real Time Information regime on smaller businesses, HM Revenue & Customs has further extended its relaxation of the reporting rules until April 2014. The extension means that businesses will not need to change their approach half way through the tax year, thus minimising the potential disruption for small business owners.

More good news comes in the form of an expansion of the Micro-Business Moratorium, which aims to reduce the regulatory and administrative burden for small businesses. Under the plans, the introduction of the Small and Micro Business Assessment will allow businesses with up to 50 staff to be included in the moratorium from April 2014.

Real Time Information rules extended again for small businesses

HM Revenue & Customs (HMRC) has announced that the temporary relaxation of its Real Time Information (RTI) reporting rules will be extended until April 2014.

From its introduction on 6 April this year, RTI has required employers to report the payments and deductions they have made under PAYE on or before the time of payment, rather than at the end of the year.

However, following concerns over the impact of the changes on smaller businesses, HMRC had granted a temporary relaxation of the rules to businesses with fewer than 50 employees, allowing them to report via the new system but on a monthly basis, until 5 October 2013.

HMRC has now further extended this deadline from October 2013 to April 2014, to ensure that smaller businesses do not need to change their approach midway through the tax year. 

As with the current exception, employers must still use the new system, but may do so monthly (on the date of their regular payroll, providing it is no later than the fifth of the month), rather than on or before the time of payment.

Paul Aplin of the ICAEW Tax Faculty Technical Committee said, 'Extending the easement makes very good sense and will provide a valuable breathing space for HMRC to engage further on this issue which, if not addressed, will impose extra cost burdens on significant numbers of such businesses.'

HMRC commented that it was 'continuing to work with businesses over the coming months to identify whether there are any specific circumstances with on-or-before reporting that it needs to cater for in the longer term'.

More than 1.4 million employer PAYE schemes are currently reporting in real time, with around 83% of small and medium-sized businesses and 77% of micro businesses now using the new system.

Despite the extended deadline, small businesses are advised to take steps now to ensure that they are fully prepared for the new regime.

For further advice on RTI and meeting your payroll needs, please contact us.

Red tape moratorium to be extended to more businesses

An initiative that exempts small businesses from new regulations looks set to be extended under new plans announced by the Government.

The existing Micro-Business Moratorium was introduced in the 2011 Budget and currently applies to firms with fewer than 10 employees. However, the new Small and Micro-Business Assessment (SMBA) will extend this moratorium to businesses with up to 50 staff.

Under a 'rigorous' cross-government assessment process, firms will also be exempt from any new regulations if there is evidence to show they create a disproportionate burden that could impede growth for these businesses.

Announcing the proposals, the Business Minister Michael Fallon said, 'On my watch, new regulations will now only extend to small businesses if they are essential, justified, and where disproportionate burdens are fully mitigated. And where regulation is not fit for purpose it will be reformed or binned'.

The move has been welcomed by many of the UK's leading business groups, which have long called for more action to reduce the red tape burden on small enterprises.

John Allan, National Chairman of the Federation of Small Businesses said, 'The Small and Micro Business Assessment should help to make future regulation more manageable and proportionate for the smallest firms, and is to be welcomed. This should mean that business owners will be able to devote time to growing their business and creating jobs rather than form filling'.

Meanwhile, Hayley Conboy, CBI Principal Policy Adviser for Enterprise, commented, 'Regulation disproportionately affects smaller businesses which lack specialist resources to manage it, so this extension to the moratorium will help free up more of these firms to focus on growth.

'However, it does not apply to many new rules impacting on companies so must not distract from the need for the Government to always 'think small first' when designing regulations. This will ensure that all firms can comply without disproportionate cost'.

The SMBA will apply to new regulations that come into force after 31 March 2014.


6 July
Deadline for submission of Form 42 (transactions in shares and securities).
Deadline for submission of EMI40 (EMI Annual Return).
File Taxed Award Scheme Returns, file P11Ds, P11D(b)s and P9Ds. Issue copies of P11Ds or P9Ds to employees.

14 July
Due date for income tax for the CT61 period to 30 June 2013.

19/22 July
Quarter 1 2013/14 PAYE remittance due.
Final date for payment of 2012/13 Class 1A NICs.

31 July
Second payment due date for 2012/13 Class 2 NICs.
Second Self Assessment payment on account for 2012/13.
Annual adjustment for VAT partial exemption calculations (April VAT year end).
Liability to 5% penalty on any tax unpaid for 2011/12.
Deadline for tax credit Annual Declaration (if estimated, final figures required by 31/01/14).


'The Business Bank has the potential to be a game changer in the small business finance market, but only if its aims and funding are clearly set out.'

John Allan, the national chairman of the Federation of Small Businesses, expressing his wish for a more focused and long-term plan for the new Business Bank.



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