HMRC has agreed to extend the period for the relaxation of reporting arrangements for small businesses reporting PAYE in real time, until April 2014.

This decision was taken in recognition that some small employers who pay employees weekly, or more frequently, but only process their payroll monthly may need longer to adapt to reporting PAYE information in real time.

The relaxation means that employers with fewer than 50 employees may send information to HMRC by the date of their regular payroll run but no later than the end of the tax month in which the payments are made. A tax month always ends on the 5th of a calendar month.

In the meantime, HMRC say they will continue to work with employer representatives to assess and understand the impact of RTI on the smallest businesses and consider whether they can make improvements to real time reporting which will address their concerns without compromising the benefits of RTI or the success of the Department for Work and Pension's Universal Credit.

More details are available from HMRC HERE