Do you ever give your employees an advance on their pay?
12th November 2014
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We are now into the second year under the RTI regulations for the electronic filing of payroll information. HM Revenue and Customs (HMRC) had adopted a relaxed approach in the first year of operation of RTI.

This relaxation meant that employers of less than 50 employees could submit RTI reports on or before the last payday in the tax month irrespective of how many paydays occurred. This relaxation no longer applies to companies of 9 or fewer employees (“micro employers”).

This raises a concern for businesses with more than 9 employees who give pay advances. Advances count as payments, and should be reported to HMRC. In short, advances are essentially being outlawed under the new rules, unless employers go to the trouble of providing payslips and submitting information every time.

Contact us on 01932 564 098 if you need advice about how to handle your payroll and its reporting to HMRC.

About the Author

Mark H

Member since: 20th August 2014

Chartered Accountant. Joined Fuller Spurling in 1990. Director, partner and major shareholder since 1999.

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