Large numbers of SMEs are still unaware of the need to implement HMRC's Real Time Information (RTI) requirements, even though there just 12 weeks left until the deadline, a survey has found.

According to DTE Business advisers - who surveyed 126 SMEs and accountancy firms at a recent RTI seminar - 96% of companies said they or their clients were completely unaware of the changes, or know it's happening in April 2013 but have a lack of understanding of how to prepare for it.

Reporting requirements for the collection of tax and NICs under PAYE are set to affect everyone without exception as it will require all employers to submit information, including details of earnings and the tax and NICs deducted, each time a payment is made to an employee - on or before payment day. This is regardless of whether employees are paid weekly, monthly or if they are casual labour.

In addition, 54% of respondents believed that RTI would create up to 25% more work for their organisation, and a further 29% believed it would be as much as 50%. This work would be created by obtaining the correct employee data required to satisfy HMRC's criteria - 50% of respondents feel this will be the biggest challenge when implementing RTI.

A further 41% of respondents believe extra work will be created through having to change payroll procedures to ensure reporting is within the restrictive time limits, on or before the payment date.

Lynne Cramb, director of payroll at DTE Business Advisers said that the lack of understanding by businesses that should be already making preparations was quite staggering.

'This is the largest change to payroll in 60 years and it seems to be going largely unnoticed at present. The burden on SMEs is a worry - there are certain industries, entertainment and hospitality for example, where casual staff may be drafted in at a minute's notice and paid the same day. The requirement by HMRC to pay tax and NICs on or before the employee is paid will challenge some,' said Cramb.