TAX bosses have welcomed a Government back down on payment reports for small businesses.

The North-East England branch of the Chartered Institute of Taxation (CIOT) and the Low Incomes Tax Reform Group (LITRG) said the Government's decision to relax real time information PAYE reporting was a positive move.

The change means employers with less than 50 workers, who find it difficult to report every separate payment to employees at the time of payment, will be able to send information on the date of their regular payroll run but no later than the end of the tax month.

Anthony Thomas, chairman of LITRG said: “This will now allow many small businesses, which might have struggled with real time information to use it with minimum disruption.

“Everyone understands real time information needs to work well, not just to eradicate avoidable mistakes from the PAYE system, and we know that small and growing businesses will bear the major part of the cost and administrative burden.

“Giving small businesses some leeway at least over the next few months is good news, and the Government is showing its willingness to understand how best they can assist in relieving the pressures on that important sector of the economy.”