HMRC to postpone penalties for Real Time Information (RTI) submissions

On February 12 2014 HM Revenue and Customs (HMRC) announced that they would delay the introduction of penalties for Real Time Information submissions (RTI) which were due to commence on 6 April 2014. This does not mean that penalties will not be levied for non-payment of tax and National Insurance (NI) which were due in the year. The late penalty charges have not altered since the introduction of RTI. More information can be found at www.hmrc.gov.uk/payerti/end-of-year/payepenalties/late-payments.htm

Publicised as recognition that employers need more time to adjust, the truth is that HMRC have bowed to pressure from professional bodies who canvassed their members to provide examples of the problems they were facing. The Chartered Institute of Payroll Professionals (CIPP) commented:

“This additional time will allow both employers and HMRC to iron out all the teething problems being experienced by employers, particularly around the payment reconciliation process without the fear of financial implications”.

The penalties will be staggered and the new timetable will be as follows:

April 2014 – in-year interest levied on any in-year payments not paid by the date they were due.

October 2014 – automatic in-year late filing penalties.

April 2015 – automatic in-year late payment penalties.

So there is a six month reprieve until automatic penalties will again be top of the agenda.

The Payroll Team at Wright Vigar are able to deliver a cost-effective RTI ‘Health-Check’ to ensure your systems are working correctly and all submissions are being made correctly.

If you would like more information about this service please contact Carolyn Cunningham by email at carolyn.cunningham@wrightvigar.co.uk  alternatively to speak to Carolyn or one of the payroll team please call us on 01522 531341.