Real Time Information – penalties
When the Real Time Information (RTI) system was introduced, HMRC announced that there would be no penalties if in-year Full Payment Submissions (FPS) were sent in late. HMRC subsequently announced their intention to stagger the introduction of in-year late filing and payment penalties to give employers more time to adapt to reporting in real time.
With effect from April 2014 in-year interest became payable on any in-year payments not made by the due date. For employers that pay monthly, the first payment of 2014 to 2015 was due on 19 May (or 22 May for employers who pay electronically). This also applies to late payments relating to the Construction Industry Scheme (CIS).
In addition, from October 2014, automatic in-year late filing penalties will apply and from April 2015, automatic in-year late payment penalties will apply.