RTI adds extra burden to fragile cash-flows

With just two months to go before the implementation of Real Time Information (RTI) by HMRC, employers should be reminded that they need to update their payroll systems to ensure that they will comply with these new regulations.

RTI is a radical change to the way the PAYE scheme is operated and in summary is the submission of a report to HMRC of deductions made from employees’ wages at the point of deduction.  This change will give HMRC real time (hence the name of the scheme) and up to date information on each and every employer’s PAYE & NI obligations. This in effect involves the production of a mini P35 on a weekly or monthly basis depending on how often employees are paid, rather than just at the end of the financial year.

Many of the companies and businesses that we advise have fallen into arrears with their PAYE & NI payments and these arrears will have accumulated over a significant period of time. Under the current system, HMRC will not know the extent of any arrears until the submission of a P35 at the year end. Under the new system they will be aware of any arrears, and in particular increasing arrears, on a weekly or monthly basis.

The implementation of RTI and the introduction of a new penalty system could see HMRC taking a more proactive approach to the collection of overdue PAYE & NI payments. This could have the effect of further pressure being placed onto a company’s already fragile cash flow.

Time will tell if this leads to an increase in insolvencies due to HMRC issuing demands for payment and petitioning for the winding up of businesses for those none payers.

Companies and business owners therefore need to ensure that they are compliant with the new requirements from HMRC and should the situation arise that they are unable to meet the liabilities as and when they fall due that they take the relevant advice from their accountants or an Insolvency Practitioner.

Emma Legdon is a Licensed Insolvency Practitioner at Hart Shaw and can be contacted on T: 0114 251 8850 or email: emma.legdon@hartshaw.co.uk.

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Free seminar – ‘Social Media for professional firms: Developing and enhancing your online presence’

A FREE seminar with business experts Hart Shaw and Linked2Success.

Tuesday 12^th March 2013 – 8:30am to 10:30am – The Hart Shaw Building

 

 

 

 

Are you making the most of your business networks and providing clients with reasons to stay with your business?

Networks are not simply about finding new clients, they’re also enormously important in helping you to collaborate with other complimentary businesses, ensuring that you offer your clients a one stop shop for their own business needs.

Hart Shaw is joining forces with social media experts, Linked2Success, for a follow up to 2012’s successful LinkedIn seminar focusing on the benefits of developing a wider Social Media strategy and implementing this into your marketing plan in order to attract and keep new business.

Steve Phillip, co-founder of Linked2Success will speak on the relevance and benefits of professional services firms and other businesses engaging with social media platforms such as LinkedIn, Twitter and others and how these tools are more crucial as part of your overall business development strategy in building networks and relationships that will raise your brand profile above your competitors.

95% of sales pipeline is being generated in some companies JUST by using LinkedIn & social media – How much extra revenue is your company generating by using these tools effectively?

This seminar is for you if you want to:

• Reach more new clients
• Raise your brand profile to attract more business
• Network and build relationships with the right business partners
• Strengthen relationships with existing clients

The seminar is hosted by Hart Shaw, with Business Recovery Partner, Christopher Brown introducing and closing the event. Christopher will provide a brief overview of the business recovery and insolvency market along with further details of Hart Shaw’s ‘Special Advisory Service’, which is available to professional service firms.

The details are:

• Date: Tuesday 12^th March 2013
• Time: 8:30am to 10:30am
• Venue: Hart Shaw Building, Europa Link, Sheffield Business Park, Sheffield, S9 1XU

The seminar is FREE to attend and you are very welcome to bring a colleague.

To confirm your attendance please contact Brendan Hall at Hart Shaw on T: 0114 251 8872 or email: brendan.hall@hartshaw.co.uk. Places are limited so please book early to avoid disappointment.

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