Research by Sage has shown that almost three-quarters of a survey of 1,100 small businesses are not sure how changes to the PAYE system will affect them, with some reporting they do not even know that changes are to be made.
The majority of businesses both large and small in the UK are to be affected by new changes to the PAYE system.
The system, which was first introduced in 1944, is to see major new changes with pilots occurring in Spring 2012. All businesses will be expected to be adapted to the changes by October 2013.
Employers will be asked to provide information to HMRC in relation to National Insurance, Student Loans and PAYE as they pay employees every month, rather than just annually at the end of the Payroll year.
The planned changes are expected to decrease paper work and valuable time spent on admin by HR departments. It is also expected to help employees as they change jobs, as well as removing the need for a P45/P46 system in the future.