RTI extension for micro employers
Micro employers will be given until April 2016 to adapt to the real time information (RTI) system for reporting PAYE payments, HM Revenue & Customs (HMRC) has announced.
Micro employers – those with fewer than 10 employees – who need more time to adapt to RTI can continue reporting PAYE information on or before the last payday in the tax month until April 2016.
Under RTI, employers must send employee PAYE information to HMRC in real time, rather than at the year-end.
A separate extension allows companies with fewer than 50 employees to continue reporting PAYE information by the date of their regular payroll run but no later than the end of the tax month in which the payments are made until April 2014. The new extension for micro businesses is separate to this arrangement.
HMRC’s director-general for personal tax, Ruth Owen, said:
“This package strikes a good balance by ensuring RTI improves PAYE processes while minimising the impact on micro-businesses and their agents by giving them up to two years to adapt.”
Minimum wage rises to £6.50 an hour
The national minimum wage (NMW) for adults will rise by 19p an hour to £6.50 on 1 October 2014, the Business Secretary Vince Cable has announced.
The Government has agreed to follow the three per cent rise proposed by the Low Pay Commission last month. This will be the first time in six years that the NMW has increased above the rate of inflation.
“The recommendations I have accepted mean that low-paid workers will enjoy the biggest cash increase in their take-home pay since 2008,” said Mr Cable.
Other NMW rates will increase by two per cent from 1 October 2014:
the rate for 18 to 20-year-olds will rise by 10p to £5.13 an hour
the rate for 16 and 17-year-olds will increase by 7p to £3.79 an hour
the rate for apprentices will increase by 5p to £2.73 an hour.
Katja Hall, chief policy director at the Confederation of British Industry, said the decision was a “sensible one and will not put jobs at risk.”
Dr Adam Marshall, executive director of policy and external affairs at the British Chambers of Commerce, said he was pleased that the Government has accepted the “evidence-based approach […] rather than succumb to politically attractive alternatives.”