YOU HAVE HAD PLENTY OF WARNING, DON’T GET CAUGHT OUT
Below is an extract from the GOV.UK site on the staggered introduction of Real Time Information (RTI) penalties which should allow businesses to be fully compliant, but October is not that far away now and I wanted to mention this again just in case some people are still trying to get to grips with this.
Monthly penalties of £100 for a small business is something you can do without.
To comply with RTI filing you must:
- File a Full Payment Submission (FPS) each time, or before you pay any employees
- File an Employer Payment Summary (EPS) each month, which shows any corrections to the amount you owe to HMRC
The important point is to ensure you do not file your RTI return after you have paid your employee’s.
RTI late filing penalties from October 2014
|No of employees||Monthly penalty|
So speak to your accountant and ensure your systems are ready and avoid paying unnecessary fines!
If you have never heard of RTI and you pay employees, phone your accountant NOW 🙂
Extract from GOV.UK site:
The new automatic in-year Pay As You Earn (PAYE) penalties for late filing and late payment and in-year interest (charged on tax and National Insurance Contributions (NICs) that are paid late during the year), were due to start from 6 April 2014.
Real Time Information (RTI) is a big change and HM Revenue and Customs (HMRC) and some employers are continuing to learn. Having listened to customer feedback, HMRC has decided to stagger the start of the new in-year late filing and payment penalties to give employers more time to adapt to reporting in real time. The new timetable 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
At the same time, HMRC is continuing to improve its systems and guidance. HMRC has worked closely with the Department for Work and Pensions (DWP) to ensure that RTI will support the operation of Universal Credit, which brings together means-tested in and out-of-work benefits.HMRC’s Director General for Personal Tax, Ruth Owen, said: The introduction of RTI is going extremely well for the majority of employers but there are still some who need a bit of time to adapt fully to the changes. This additional time will give us the opportunity to ensure that improvements to our internal systems are working, to learn from them, and to provide better customer support to employers who need more time to adapt.