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Updates from the Clayton & Brewill team.

HMRC to delay RTI penalty scheme

13th February, 2014

In a rare piece of good news from employers, HMRC has announced this week (12 February) that it is to delay the implementation of Real Time Information penalties for late filing and late payment.

The automatic penalties were due to start from 6 April but HMRC says it has 'listened to customer feedback' and will give employers more time to get to grips with the new regime.

The Revenue is also introducing a new RTI 'Late Reporting Reason' facility to allow employers to explain why they are making a late submission.

The new timetable for RTI penalties 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

Clayton & Brewill's head of Payroll Services Chloe Hughes comments:

'To avoid any in-year late filing penalties on 6 October employers need to make sure all their submissions are up to date for the period 6 April to 5 October 2014.

'RTI is one of the biggest changes to the payroll system in over 60 years and requires employers and pension providers to report to HMRC payroll deductions and payments at the time they are made, rather than after the end of the tax year, as was the case before.

'We are pleased that HMRC is giving businesses a little more time to get used to the changes and welcome the news that they will also be working to improve on the internal systems.'

Need help with a payroll query?

For help or advice with any aspect of payroll, including Real Time Information and planning for pension auto-enrolment, contact Chloe Hughes by email or on 0115 950 3044.

Clayton & Brewill has offices in Nottingham and Long Eaton and works with SMEs and family owned businesses on a broad range of accounting, payroll, audit and tax matters.

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