The conditions under which a business is given a licence to operate by the authorities is changing, and you have to be prepared to change to meet the higher standards of compliance required of you.
As an example of this, consider the impact of RTI-Payroll in 2013 for small companies.
The actual operation of the scheme is straight forward and although it requires more discipline in meeting reporting deadlines each month, there is nothing to worry about in the day-to-day operation of the system.
Most large businesses welcomed the change as it will reduce the amount of administration they have to carry out at each payroll year end.
Many small employers already out-source their payroll function to their accountants or specialist payroll agencies already. So once again the change is hardly going to present many problems.
The sting in the tail will only apply to those directors who continue to use their company´s bank account as an extension of their own. The regulations require companies to report each month the amount the payroll indicates should be paid to each director and the amount actually paid to them each month.
If they don´t match, then that is where problems begin. The company can expect to face penalties and extra tax. So a little planning each year are certainly indicated for some and that is where Tax Data Ltd can really help you head off a tax disaster before it becomes a problem.
Published 13 September 2017.
Updated 15 October 2017.