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The penalties regime of the real-time information (RTI) reporting of PAYE will not begin October, HMRC have announced, signalling a six-month postponement.
Automatic fines for late filing and overdue payments were due to begin on 6 April, but the Revenue has introduced a delay after finding it needed time to improve RTI systems and guidance.
The new timetable will be:
The penalties regime of the real-time information (RTI) reporting of PAYE will not begin October, HMRC have announced, signalling a six-month postponement.
Automatic fines for late filing and overdue payments were due to begin on 6 April, but the Revenue has introduced a delay after finding it needed time to improve RTI systems and guidance.
The new timetable will be:
- April 2014 – 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.
Employers have until the autumn to bring up to date their submissions for the period 6 April to 5 October 2014. Interest on late payments will continue to accrue, and firms will be able to see the amount in their online tax account, but HMRC will not seek payment until the debt is settled.
The tax department has also suspended until April the issue of electronic, generic alerts for late payment and non-filing.
Paul Aplin, chairman of the ICAEW Tax Faculty’s technical committee, said the postponement of RTI fines comes after extensive lobbying by his organisation and other professional tax bodies.
He added, “It is essential that the problem of incorrect demands is resolved before the penalty regime is implemented; work to achieve that is underway.
“The next step must be to make the employer dashboard real time, too. That would save many wasted telephone calls for employers, agents and HMRC.”
