A quarter of UK SMEs have never heard of Real Time Information (RTI) and a third are confused about how it will impact their business, research shows.

The shocking lack of awareness is a concern given that the changes to payroll reporting - the biggest shake up in nearly 60 years - less than six months away.

The findings, from the October 2012 Sage Omnibus survey of over 1,000 UK SMEs, showed one in 10 business (12%) expect RTI to have a negative impact and make it more difficult and time consuming to submit employee information to HMRC. But half (50%) of business owners don't know when the RTI changes will come into effect.

When it is introduced in April 2013, RTI will require employers to provide employee PAYE, National Insurance and student loan information to HMRC at point of payment every month, rather than just at year end.

Lee Perkins, Sage UK's small business division managing director, said: 'RTI represents the biggest change to PAYE reporting for over half a century and it will affect the way every business does things.

'HMRC is currently working hard to put it on the radar of everyone, but if you've not heard from your payroll software provider on RTI by now you need to be asking some serious questions about their readiness for it.'