Real Time Information (RTI) – Automatic penalties update

New automatic penalties in connection with RTI were due to start from 6 April 2014. However having listened to customer feedback, HMRC has decided to phase the start of in-year late filing and payment penalties.

The timetable for the introduction of automatic penalties is now as follows:

  • 6 April 2014 – in-year interest on any in-year Pay As You Earn (PAYE) payments not made by the due date.
  • 6 October 2014 – automatic in-year late RTI filing penalties for filing a Full Payment Submission (FPS) after the date of payment stated in the report or failure to file an Employer Payment Summary (EPS) reporting a nil payment when required. Employers have up until 5 October to ensure that all RTI filing is up to date for the period from 6 April until 5 October 2014.
  • 6 April 2015 – automatic in-year late payment penalties for failure to pay PAYE due in full, and on time for a particular tax month.

Penalties will be subject to a sliding scale, dependent on the number of employees on the payroll. Employers with less than 9 employees will receive a £100 fine, which will increase to £400 for employers with 250 employees or more. The first default in a tax year will not attract a penalty.

Penalties will start being imposed by HMRC at the end of the tax quarter where a penalty is due for a tax month. A tax month runs from the 6th of one month to the 5th of the following.

For more information on RTI or any payroll matter please contact Neil Cameron, Payroll Manager by email to neil.cameron@chiene.co.uk or phone 0131 558 5800.