Penalties and Real Time Information

Real Time Information (RTI) has been operating since the beginning of the 2013/14 tax year for all employers. Under RTI, the P35 Employer’s End of Year Return will no longer be made.  Instead, an end of year declaration must be filed electronically by 19 April 2014.

HMRC have agreed a delay until October 2014 for the charging of penalties for late filing of RTI Full Payment Submissions (FPS). However, it is vital that employers ensure they are getting it right.  The FPS must be made on or before the employees are paid, regardless of the pay frequency. The pay date must be the date you set in your payroll software and the FPS must be received by HMRC before this date. Otherwise penalties of £100 for 1 to 9 employees, £200 for 10 to 49, £300 for 50 to 249 and £400 for over 250 employees will be charged for each late submission, other than the first default in each tax year.

Remember that HMRC will be charging late payment penalties if employers and contractors do not pay the PAYE due, on time and in full.  This will be essential as under RTI, HMRC will know exactly how much the PAYE/NIC payments should be and will charge penalties if the correct amounts are not paid on time.

If you need assistance or guidance, please contact us.

Posted in News.