Tuesday 12 February 2013
Small business leaders are familiarising themselves with HM Revenue & Customs' (HMRC) Real Time Information (RTI) system which is set to be introduced in April 2013.
Research conducted by the Forum of Private Business (FPB) found that an increasing number of small company bosses understand the implications of RTI - a new payroll system that will affect all businesses with paid employees.
Two-thirds of those surveyed by the organisation said they are aware of what is expected of them.
However, Phil Orford, chief executive of the FPB, noted that there are still a significant number remaining "ignorant and unaware".
"The other important issue raised by our research is the huge lack of confidence small firms have in HMRC to cope with the changes – with 65 per cent of businesses expressing concern at this," he stated.
"If nothing else, this paints a depressing picture of small firms' confidence in a government department that is key to their operations."
Mr Orford said those businesses involved with the RTI pilot run by HMRC last year were a "little more confident", but there are clearly still fears about how seamless the transition will prove to be.
In the FPB study, just under half of the respondents did not see any benefits in the RTI scheme, while one in five felt the scheme would make them less likely to take on employees.
Posted by Steve Williams