New research carried out by the Forum of Private Business (FPB) has shown an increased awareness among small firms of the Real Time Information (RTI) system being introduced by HMRC in just two months’ time. The FPB’s latest quarterly referendum study, carried out amongst its members, showed that while the majority of firms now understood the implications of RTI, a worrying number was still in the dark.
RTI is a new payroll system being introduced by HMRC in April that will affect all businesses with paid employees. The forum’s latest research conflicts with similar studies by other professional bodies which have shown a much higher number of businesses unprepared or even aware of RTI.
The FPB’s chief executive, Phil Orford, says: “RTI is looming, and while our research suggests there is a growing understanding of what this means for businesses, there are a significant number still ignorant and unaware. The other important issue raised by our research is the huge lack of confidence small firms have in HMRC to cope with the changes – 65% of businesses expressing concern at this.
“If nothing else, this paints a depressing picture of small firms’ confidence in a Government department that is key to their operations. Those businesses involved with the RTI pilot run by HMRC last year were a little more confident here, but there are clearly still fears about how seamless the transition will prove to be.
“The positive news, though, has to be that compared to earlier studies carried out just a few months ago, more than two thirds of small businesses now know what’s expected of them. While it’s likely this is in part because of the work we’ve carried out with our own members to raise awareness of RTI, it still suggests the message is slowly getting through.”
