Update to RTI tax rules

HMRC has made allowances for employers of harvest casuals and beaters so they will not be required to deduct tax from their employees.

Real Time Information (RTI) rules, which come into effect in October, mean .all employers must fully record an employee’s full name, date of birth, National Insurance number, address and amount paid, where previously only a name was required.

Original RTI plans meant all employers needed to deduct tax, however HMRC has made an exception where the person is a daily harvest casual or beater and:

• is taken on for one day or less,
• paid off at the end of that period
• with no contract for full-time employment.

Employers can use the tax code NT for these employees. This does not mean payments are not subject to tax, but HMRC will contact the individual employees to retrieve this.

HMRC is expected to release full guidance on the arrangement in the next few weeks.