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RTI masterplan

09 October 2012
Issue: 4374 / Categories: Forum & Feedback
Real-time information may be seen as an additional administrative complexity for small business and the question is asked whether it might be simpler to pay monthly dividends and an annual bonus to the director of a 'one-man company'

The idea that all employers will have to comply with real-time information (RTI) electronically and have to do it on or before the date of payment strikes me as a compliance headache to say the least.

I also see from Philip Nye’s article At a crossroads that even HMRC have had to defer the “on or before” requirement from the pilot presumably because they realise it won’t work. So will it be a requirement in April 2013 without ever being tested?

In an attempt to mitigate the administrative effects of RTI I am about to recommend to my small company clients the following.

Calculate the likely amount that can be drawn as dividend over the coming year divide by 12 knock a bit off for prudence and declare that as a dividend each month.

Pay a single director’s bonus in March...

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