
From 6th April 2013, all companies will have to start reporting PAYE information in real time.
The new process, referred to as Real Time Information (RTI), will be mandatory and means SMEs will have to use payroll software to immediately inform HMRC of their employees pay and deductions each time they pay their wages.
The knock-on effect of this is more visibility by HMRC, so meaning companies will be less likely to get away with building up PAYE arrears before any action is taken.