The rules on PAYE are changing with reporting of individual payments to HM Revenue and Customs becoming stricter and moving to Real Time Information (RTI) reporting.
However, it has been announced that businesses with 50 or fewer employees will be given more time to report payments to employees to HMRC in the short term.
This relaxation of the rules will apply until 5 October 2013, and means that small businesses may send the relevant PAYE reporting information to HMRC no later than the end of the tax month (e.g. 5th of each month) instead of at the time at which the payment is made to the employee.
This has come about through the Government responding to suggestions that the requirement to report to HMRC on or before the employee is paid may prove difficult for certain small businesses.