Real Time Information – penalties
The introduction of major changes to the way PAYE information is collected, began with the introduction of the Real Time Information (RTI) system in April 2013. The system involves employers sending HMRC information about tax and other deductions from employees’ pay when the employee is paid, rather than at the end of the year as at present. More than 99% of PAYE records are currently being reported in real time.
At the time that RTI was introduced, HMRC announced that there would be no penalties if in-year Full Payment Submissions (FPS) were sent in late, until April 2014. HMRC has now announced that following feedback, it 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.
The new timetable will be:
- 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
Commenting on the move, HMRC’s Director General for Personal Tax, Ruth Owen, said:
‘The introduction of RTI is going extremely well for the majority of employers but there are still some who need a bit of time to adapt fully to the changes. This additional time will give us the opportunity to ensure that improvements to our internal systems are working, to learn from them and to provide better customer support to employers who need more time to adapt.’