HMRC Delay Payroll Penalty Regime

HMRC delay RTI Penalty Regime

HMRC have delayed the introduction of penalties for late or incorrect submission of RTI Returns and payments

The Real Time Information (RTI) reporting system for PAYE was introduced in April 2013 and a new penalty regime for late filing and late payment under RTI were due to commence on 6 April 2014, however HMRC has now agreed to stagger the start of the new penalties to give employers more time to adapt to reporting in real time.

The new penalty regime will be phased in over a 12 month period as follows:

  • April 2014 – in-year interest on any in-year payments not made by the due date
  • October 2014 – automatic in-year late filing penalties
  • April 2015 – automatic in-year late payment penalties

Introducing in-year late filing penalties from 6 October means that employers who bring all their submissions for the period 6 April to 5 October 2014 up to date by 5 October will not face any in-year late filing penalties

Commenting on the change of heart, HMRC said “RTI is a big change and HMRC and some employers are continuing to learn. Having listened to customer feedback, HMRC has decided to stagger the start of the new in-year late filing and payment penalties to give employers more time to adapt to reporting in real time. At the same time, HMRC is continuing to improve its systems and guidance.”​​​​​

This is a welcome announcement for all employers as although the implementation of RTI seems to have gone well, there are undoubtedly still large numbers of employers who struggle with the regular reporting deadlines imposed under the regime, and with Pensions Auto Enrolment about to impact on employers in 2014-2015 anything that helps ease the burden is to be applauded.

At Burgis & Bullock we have a dedicated Payroll department that deals with all aspects of PAYE, employee payments and RTI submissions for our clients. Whether you just need to ask a few questions, or are interested in a fully outsourced payroll solution contact us to day on 0845 177 5500 for a no obligation chat, or use our on-line form and someone will be in touch.

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