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.