RTI software approval updates lagging

With the full introduction of the government's controversial Real Time Information (RTI) scheme just months away, HMRC has been accused of being slow to update its list of recognised software providers capable of dealing with the proposed changes.

While there are over 250 different software packages to choose from, just 31 software developers have completed HMRC's voluntary RTI recognition process, known as PAYE Recognition. A further 40 have requested to be assessed.

Currently just over a quarter (26%) of RTI software providers have sought formal recognition from the taxman, but frustration is growing as many who have secured HMRC approval, find that their details have yet to be updated on the website.

One such company is Hampshire-based Moneysoft, whose Payroll Manager product secured HMRC approval a month ago, but has still not been added to the list.

George McHamish, Moneysoft's managing director, said: 'We're not really very happy about it, as we have gone to all the effort of helping to test their system for them. We were informed by HMRC's software development support team on 23 October that our software had been successfully recognised, but we have still not been added to the list.

'When we asked them why they hadn't updated the list after two weeks, HMRC just told us to forward on their acceptance email to anyone who wants proof.'

He said the situation was 'frustrating' and could be losing them business to potential customers who trusted HMRC, but 'most didn't.'

Earlier this month, HMRC confirmed its RTI project was set to reach the next phase, with up to 250,000 employers set to join the pilot scheme between now and March 2013.

An HMRC spokesman, said: 'The recognition scheme is voluntary, but we are confident that more software developers' payroll packages will join the scheme in good time for April 2013. The RTI pilot is enabling software developers to test and refine their products before applying for recognition. "Recognition" is the last step on this journey.'

In April 2013, employers will start to send PAYE data electronically to HMRC each time they pay their employees as part of routine payroll processes, rather than sending a separate return at the end of the year. Returns will include details of all employees' pay, tax and deductions.

Meanwhile, a quarter of UK SMEs say they have never heard of RTI and a third are confused about how it will impact their business, a survey revealed.

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.

0
Be the first to vote

Rate this article

Related Articles
Subscribe