Let's examine why chairman of the Federation of Small Businesses (FSB), John Walker, is worried that the RTI scheme will "flop".
Real-time Information (RTI) is due to come into force from April 2013, and will see companies report changes as they occur, instead of at the end of each financial year.
Have a look at the stats to why John Walker is worried: -
FSB POLL = 1,700 SMALL BUSINESSES
One of the largest worries is; does anyone know what the penalties are from submitting inaccurate or late data? This is a massive worry as this could jeopardise SME's growth in 2013/14. Lack of understanding and knowledge will cause businesses to focus more of their monthly/weekly payroll operations to make sure they don't incur penalties leading to either a drop in sales or increase in operation costs.
John Walker said:
"With only six months until RTI is due to be implemented, the FSB has real concerns that not enough businesses are aware that is just around the corner…We’re concerned that it could flop if government does not step up its game in communicating the changes.
“There are a number of steps that a business must complete before they can provide RTI to HMRC so it is critical that those affected know about it. Of the very small number of firms that are aware of the change, 30% have had to buy new software for their business. HMRC needs to act now so that all small firms can prepare their business as they only have six months in which to do it.
He added: “Without adequate communication and education from government, small firms won’t be able to prepare. It just isn’t fair if they’re then penalised for not complying.”
The HMRC spokesman said "We intensified our RTI Communication drive a few weeks ago as customer research shows that six months before it starts - in April 2013 - is the best time to engage with employers"
Research shows that 17% of HMRC-accredited software providers have said they are not planning to be RTI-ready, while a further 45% don't know if they will be supporting RTI. Find out from your payroll provider whether their systems they have in place will be RTI ready and ask the question what are they doing to make sure my business will be RTI ready and will not be penalised as of April 2013.
If you are unsure on what payroll data will need to be cleansed so that your payroll is RTI ready please click here
Or if you would like to speak to a payroll advisor on RTI call 
020 87460971
25% are "unaware" of RTI