The current hot topic
HMRC are getting tough on employers who fail to meet their Real Time Information (RTI) reporting and payment obligations. The RTI automation of PAYE enables HMRC to more closely monitor the operation of the system. Many of the requirements are not new - file on time and pay on time. However, HMRC are now looking to apply these rules strictly and to penalise those employers don't comply.
Automatic in-year late filing penalties introduced
For the majority of employers automatic in-year late filing penalties are introduced from 6 October 2014 for late filed RTI returns. Employers with more than 49 employees whose submissions for the period 6 April - 5 October 2014 are up to date by 5 October will not face in-year late filing penalties. Employers should ensure they bring, and keep, their affairs up to date.
There will be no penalty for the first month of failure but subsequent penalties for an employer who, during a tax month, fails to make a return on or before the filing date will be as follows:
- 1-9 employees - £100;
- 10-49 employees - £200;
- 50-249 employees - £300; and
- 250 or more employees - £400.
This includes annual and quarterly schemes.
Delay in penalties for some
For small employers, those with less than 50 employees the introduction of penalties has been delayed until 6 March 2015.
Relaxation for some micro employers
Existing employers with nine or fewer employees are also able to report PAYE information on or before the last payday in the tax month until April 2016.
The way forward
You need to ensure that you make your RTI returns and pay your liabilities on time, every time. Please do get in touch if you would like to discuss any of these issues in more detail or how we can help with your payroll.