HMRC Delays Imposition of RTI Late Filing Penalties

Posted by on Feb 18, 2014 in Newsletters | No Comments

HM Revenue and Customs has announced that it is changing the IT systems that support its Real Time Information (RTI) system for PAYE.

As a result, HMRC is the delaying the imposition of fines on employers who have not implemented a RTI-compliant payroll system.

Under the original proposals when RTI was implemented at the start of the 2013-14 tax year, fines for late filings and interest for late payments were due to come into effect from 6th April 2014.

Despite numerous warnings before RTI was implemented of the magnitude of the change and the additional administrative burden and cost placed on businesses, it has taken until now for HMRC to acknowledge that “RTI is a big change and 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

The HMRC continued, “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.”

Part of the reason for the revision of the timetable is to allow the RTI system to integrate with the Department for Work and Pensions (DWP) new Universal Credit system, which brings together means-tested in work and out-of-work benefits.

The Universal Credit system itself has experienced IT problems and is behind schedule.

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