RTI - Penalty regime update
Originally, in-year PAYE penalties for late filing and late payment, and in-year interest, were to apply automatically from 6 April 2014. However, HMRC have recently relaxed the penalty regime to give employers more time to adapt to reporting in real time.
Under the new regime, in-year interest on any in-year payments not made by the due date will commence from April 2014. However, automatic in-year late filing penalties and automatic in-year late payment penalties will not become payable until 6 October 2014 and 6 April 2015 respectively.
Delaying in-year late filing penalties to 6 October 2014 means that employers have until 5 October 2014 to bring their current year filings up to date, before they will face any in-year penalties.
In addition, with effect from 6 April 2014, a new RTI ‘Late Reporting Reason’ data item allows employers to inform HMRC as to why they are submitting data late.
If you would like more information or would like to discuss your tax affairs in general, please contact our Tax Partner, Chris Barrington on the details below:
telephone: 01942 292505