RTI Penalties

RTI Penalties

HMRC had threatened penalties for those employers that don’t comply with the new RTI rule, here’s an update to see what the latest is.

What is RTI? (Real Time Information)

Starting from April 2013, all employers must send details of salary, tax and national insurance to HMRC via the internet each time they make a payment to an employee.

This means that the end of year returns P35 & P14 are no longer required and so there won’t be any late filing penalties for these documents. Instead penalties will be imposed for missing the RTI deadlines.

Penalties

HMRC have announced the late notification penalties won’t apply for the first year of RTI and instead they’re working on a fair and practical way to implement these from 2014.

PAYE errors

The RTI submissions (Full Payment Submissions) won’t be subject to fines for late submission in the first year however penalties will still be charged under the existing rules for employers who make PAYE errors.

Late Payments

Interest and penalties will continue to be charged on late payments however it is worth noting that under RTI it will be clearer to HMRC when a payment is late and to calculate the interest and penalty due.

Watch this space for further information and if you have any questions please don’t hesitate to get in touch.

Ben

Courtley West

Chartered Certified Accountants.