Concern at number of companies unaware of impending payroll changes

New research carried out by the Forum of Private Business has shown an increased awareness among small firms of the Real Time Information system being introduced by Revenue and Customs in just two months’ time.

The Forum’s latest quarterly Referendum shows results of a study carried out amongst its members, which showed that while the majority of firms now understood the implications of RTI, a worrying number were still in the dark.

RTI is a new payroll system being introduced in April that will affect all business with paid employees.

The Forum’s Chief Executive Phil Orford said: “Real Time Information 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 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.”

The research was part of a wider investigation into the way small businesses use technology.

It showed that when it came to investing in technology most firms (35%) were looking to spend on existing systems to get them working better. A significant 31% were not looking to invest at all in the coming year.

One in four businesses mentioned that improved broadband speed was the key support needed by businesses.

However, e-invoicing appears to be catching on with SMEs; 47% of businesses reported they would use e-invoicing when dealing with some or all of their customers by the end of the year, although 38% had no plans to use it.