Taxman cuts red tape for 80,000 businsses
The Inland Revenue has increased the level below which small employers can pay PAYE, National Insurance contributions and other taxes quarterly rather than monthly.
For deductions made in periods beginning after 5 April 2000, employers can pay quarterly if their average monthly payments to the Revenue are less than £1,500. The previous limit was £1,000.
The move is expected to give an additional 80,000 small employers the opportunity to pay quarterly and should improve cash flow and reduce administration costs. The total number of employers who could benefit will rise to 800,000 – around 60% of all employers.
The change, which was announced by chancellor Gordon Brown in his Budget speech, has now been released in further detail and the necessary regulations have been laid.
The changes will also apply to payments by contractors in the construction industry.