A NORTH East accountancy firm's new investment in IT will help secure growth in 2013 as it gears up for major changes to the UK's PAYE system.
Cramlington-based accountancy firm AWS Accountancy Ltd, which provides payroll among other services for clients, has completed a five-figure investment in new technology ahead of changes to the way the Government will collect tax from private and public sector organisations.
These will see a requirement to provide payroll information electronically to the HMRC each time an employee is paid rather than once a year, which is the current situation.
Real Time Information (RTI) is being introduced from April and by October it will be mandatory for all employers to process PAYE, NIC and student loan data using the new system.
Although this will see the abolition of the end-of-year employer P35 annual return forms, it is expected to place a huge administrative burden on the region’s businesses, including sole traders.
Many may find themselves struggling to meet compliance deadlines and will need expert help to return the required information to HMRC on time to avoid penalties.
AWS has made the investment to ensure it is well placed to help clients when the changes – the biggest payroll transition since PAYE was introduced in 1944 – come into force.
New high-speed data cabling and upgraded PCs have been installed at the firm’s office to ensure its dedicated payroll bureau is ready with fast data processing capabilities to cope with the change and to continue to provide clients with efficient, streamlined and value for money services.
Ian Cooney, AWS tax partner, said: “This will be one of the biggest shake-ups to the tax system in decades and will affect everyone, from larger companies to sole traders.
“Employers now need to ensure the information they hold on employees is correct and work towards the introduction of RTI with expert and proactive accountancy services in place.
“We have made this strategic investment now to make sure we’re well placed to ensure clients continue to enjoy the highest levels of service.”