Real Time Information (RTI) Penalties

The penalties for late filing PAYE under RTI have been kept the same for tax years 2012/2013 (pilot scheme) and 2013/2014, while RTI integrated in to businesses’ everyday activities. However, from October 2014, the penalty regime for late RTI returns will become effective. Late filing penalties will apply from 6th October 2014, and late payment penalties will apply from 6th April 2015.

Late filing penalties will apply on a monthly basis, where payment information is not received as expected on an Full Payment Submission (FPS), or where you haven’t informed the HMRC that no employees have been paid by sending an Employer Payment Summary (EPS). This will be dependent on the number of employees within the PAYE scheme, however, no penalty will apply for the first month in each tax year that returns are filed late, (this does not apply to employers operating annual schemes).

Number of Employees

Amount of monthly filing penalty per PAYE scheme

1 to 9

£100

10 to 49

£200

50 to 249

£300

250 or more

£400

Additional penalties can be incurred for returns over three months late. Currently, this amount is set at 5% of the tax and NICs that should have been shown on the late return.

All penalties are due for payment 30 days from the date of the penalty notice. Penalties not paid on time will attract interest.

HMRC agrees that if there is a reasonable excuse for the return being late, and that the return has been filed as soon as you reasonable could, then the penalty does not have to be paid.

If you think you have a reasonable excuse, or disagree with the amount of the penalty, you can make an appeal. This can be done online using HMRC’s Online Service, or in writing.

If you would like any help with reporting under RTI, please contact Green & Co on 01633 871122.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

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