Welcome to my blog.
My intention is to use this blog to keep readers updated on all aspects of current HMRC legislation relating to payroll management. If you have any questions or would like a quote for my services please go to my Home Page
HMRC announced yesterday that penalties for late filing of returns will be phased in as follows:
Employers with fewer than 50 employees will face automated in-year penalties for late real-time PAYE returns from 6 March next year.
Those who employ 50 or more people will face penalties from 6 October 2014.
HM Revenue and Customs (HMRC) will send electronic messages to all employers shortly to let them know when the penalties will apply to them, based on the number of employees shown in the department’s records.
The Inland Revenue have not enforced penalties for late filing of returns during the phasing-in of Real Time Information (RTI) reporting. The requirement to report payments to employees in real time (i.e. on or before the actual pay day) became full operational for all employers from April 2013. However, to allow employers to get used to the new systems, they have, so far, not imposed any penalties for late filing on smaller businesses – that is all about to change! The following statement is taken from the HMRC website:
“New late filing penalties will apply to returns due from employers for the tax year 2014-15 onwards. Having listened to customer feedback, HMRC is deferring the start of these penalties to give HMRC and employers more time to adapt to reporting in real time. They will now start from 6 October 2014. To avoid late filing penalties, you must make sure all submissions due are fully up to date by 5 October 2014.”
So, the deadline for getting this issue sorted is drawing close. Have you got systems in place to ensure that everything is up-to-date by 5th October and that all future returns can be made on time? If not, now would be a good time to consult a Payroll Professional for advice – you may well find that it actually saves you money by avoiding penalties.
I have recently had a short article published in the Guardian on the benefits of working from home. You can read it here
The Pensions regulator has published an in-depth analysis of Auto Enrolment to date. It can be seen here.
The latest update from HMRC regarding filing and paying dates is now online at http://www.hmrc.gov.uk/news/rti-filing-paying-hmrc.htm
Warrington Disability Awareness Day 2013
I shall be at Warrington Disability Awareness Day on 14th July in Marquee 8. If you are coming, pop in and say “hello” – it would be great to see you! Further details at http://www.disabilityawarenessday.org.uk/
HMRC has now resolved the issue of incorrect National Insurance numbers being issued and have now resumed issuing numbers in response to requests.
HMRC have released the latest version of their online software for employers with 9 or fewer employers. Version 13.1.13122.102 was released on 30th May 2013 and now offers functionality to complete and submit Earlier Year Update (EYU) and to produce and print certain forms including P45’s.
Full information and download links can be found HERE
HMRC have released a useful document advising on how correct misaligned payroll reports. A copy can be downloaded here: http://www.hmrc.gov.uk/payerti/reporting/correcting-reports.pdf
It seems that there are a considerable number of small businesses that HMRC expected to come into RTI from April who have, so far, failed to file their first FPS and HMRC are preparing to contact them. The number of businesses falling into this category will be confirmed before the end of June.
Apparently 1.3 million employers have joined the scheme, but 1.9 million are thought to be eligible.