LATE FILING PENALTIES TO BE DELAYED FOR SMALL EMPLOYERS
Penalties for late filing of Real Time Information (RTI) returns were due to come into effect for all employers from 6 October 2014. However, this now only applies to employers with 50 or more employees. For employers with less than 50 employees, the start date for automatic in-year filing penalties for late submission of an RTI return buy cialis online without prescription will not start until 6 March 2015.
The penalties will still apply as outlined in our previous blog dated 24 February 2014.
To reiterate our commitment to clients, it is our intention to submit payroll details under RTI as promptly as possible, and will continue to do so in the future.
Further information in respect of late filing is available here.
2013/14 is the first tax year in which the majority of employers have submitted their PAYE data using Real Time Information (RTI). Penalties for late RTI submissions made within the year have not yet been imposed by HMRC, but that is about to change.
There are two payroll actions which HMRC can issue late penalties for – late filing and late payment.
Late Filing Penalty
The late filing penalties that were due to be implemented by the Revenue from 6th April 2014 have now been revised and will come into effect from 6th October 2014. However, this is to give employers ‘more time to adapt to reporting in real time’.
So, when the penalties become effective:
Late filing penalties will apply on a monthly basis where payment information is not received via a Full Payment Summary (FPS) or when the Revenue have not been informed that no employees have been paid by sending an Employer Payment Summary (EPS).
The penalty regime for RTI will impose different levels of penalties depending on the size of the employer’s PAYE scheme. For late filing of RTI returns, the penalty system will use the following size bands:
Employers will be allowed one un-penalised default each tax year, unless they operate an annual PAYE scheme, in which case the late filing penalty will apply even if it is the first default.
Also, existing employers with nine or fewer employees will have an extension until April 2016, so that they can report PAYE information on or before the 5th of a calendar month.
The absolute RTI rule to avoid penalties is to make the submission ‘on or before the payroll payment date’.
Late Payment Penalty
Penalty charges for late monthly and quarterly PAYE payments are:
| No of defaults in a tax year | Penalty % | Amount to which penalty % applies |
| 1-3 | 1% | |
| 4-6 | 2% | From April 2014: the total amount that's |
| 7-8 | 3% | late in the relevant tax month (ignoring |
| 10 or more | 4% | the first late payment in the tax year) |
The first failure to pay on time does not count as a default.
As agents, it is our intention to submit payroll details under RTI as promptly as possible, and will continue to do so in the future.
If you’re an employer, you will probably be aware that payroll information must be sent to HM Revenue and Customs (HMRC) every time you run your payroll, under Real Time Information (RTI). This must be sent on or before the pay date. However, this was proving to be a challenge for many small employers, particularly those who paid their employees weekly but processed their payroll monthly. Therefore, in March 2013, HMRC issued a temporary relaxation of the deadline rules, allowing submissions to be made within the PAYE month that they are due. This was originally until October 2013. In June 2013, this was further extended to April 2014. The relaxation rules related to employers with less than 50 employees.
Now, HMRC have extended the relaxation regime for a further 2 years, to April 2016, in respect of micro employers – those with fewer with 10 employees. However, this only relates to existing employers. Any new employers after 6 April 2014, as well as any employers with over 10 employees, will have to operate RTI correctly.
Further information is available here.
Scam emails supposedly from HM Revenue and Customs (HMRC) have been around for a while now. However, it has been brought to our attention that there is currently a scam email going around which focuses upon Real Time Information (RTI). It says ‘We could not process your Full Payment Submission’, it quotes a reference and has a zip file attachment, which contains a virus. Naturally, the email should be deleted immediately.
Please pass this information on to anyone who deals with your payroll.
An example of the email can be found here (it is under 2.1).
In April 2012 HM Revenue & Customs (HMRC) started a pilot scheme for PAYE - RTI (Real Time Information).
The aim of RTI is to improve the accuracy of PAYE, submitting information electronically to HMRC every time employees are paid, instead of submitting it at the end of the tax year using the P35/P14. P11D’s and P60’s will still be required.
It will be compulsory for most employers to start using the RTI service in April 2013, and all employers must be using the service by October 2013. Using an Employer Alignment Submission to HMRC the following information will be required at set up:
In spite of the scheme being a pilot, there are strong indications that the full scheme will go ahead anyway. Accordingly, GBM Accounts have requested to be a part of the pilot scheme, from November 2012. We will be submitting information from three selected employers who have given us their permission to do so.
For further information please click here.
