HM Revenue & Customs (HMRC) recognise that some small employers who pay employees weekly, or more frequently, but only process their payroll monthly may need longer to adapt to reporting PAYE information in real time. HMRC have therefore agreed a relaxation of reporting arrangements for small businesses for a transitional period until April 2014.
This relaxation means that employers with fewer than 50 employees, who find it difficult to report every payment to employees at the time of payment, may send information to HMRC by the date of their regular payroll run but no later than the end of the tax month in which the payments are made (a tax month always ends on the 5th of a calendar month).
HMRC will continue to work with employer representatives to assess and understand the impact of RTI on the smallest businesses and consider whether they can make improvements to real time reporting which will address their concerns without compromising the benefits of RTI or the success of the Department for Work and Pension's Universal Credit.
Please see HMRC's guidance on exceptions to reporting PAYE information 'on or before' paying an employee.