Real Time Information (RTI) late payment penalties
Details of the penalties for late and inaccurate returns submitted via the new Real Time Information (RTI) system have been published by HMRC. The majority of employers will begin using RTI from April 2013, with larger employers required to follow by October 2013.
Under RTI rules, almost all businesses and pension providers are required to report their employee’s PAYE payments online on or before each pay day, as opposed to at the end of each tax year.
According to the HMRC guidance:
• Penalties for late in-year Full Payment Submissions (FPS) will not begin until April 2014. The current penalty process will continue to apply at the year end, with a penalty issued if the relevant information is not up to date by 19 May. Letters will be issued to employers from October 2013 to ensure they understand they would have been liable to a penalty.
• Automated late payment penalties will not begin until April 2014.
• No penalties for inaccurate in-year FPS will be charged for the 2012-13 tax year.
• Penalties may be charged after the end of the tax year based on final FPS for the year.
• Inaccurate FPSs for the 2012-13 tax year may incur in-year penalties.
Are you ready for the switch to RTI? We can help with payroll issues and RTI compliance, please talk to us to find out more.
Why not join us at our free RTI seminar on 17 January 2013 contact us for further information.