On 12 February this month, HMRC announced that Real Time Information (RTI) penalties for late filing and late payment of RTI PAYE online returns will now not be starting in April (2014) after complaints from accountants and businesses and technical problems with the new system.
Automatic penalties for late filing payment of RTI PAYE returns will now apply from October 2014. Automatic penalties for late payment to HMRC of tax and National Insurance deducted from pay will now apply from April 2015.
The penalties that will apply from October 2014 for late filing are as follows:
- 1 to 9 employees – £100 monthly filing penalty per PAYE scheme
- 10 to 49 employees – £200 monthly filing penalty per PAYE scheme
- 50 to 249 employees – £300 monthly filing penalty per PAYE scheme
- 250 or more employees – £400 monthly filing penalty per PAYE scheme
The penalties that will apply from April 2015 for late monthly & quarterly PAYE payments are as follows:
- First late payment – no penalty
- 2nd to 4th late payment – 1{8ee99a90b51e2217d12101096daf2ee9e40c43b9c2fa413e32f91dd0a196a214} penalty charged on the amount paid late
- 5th to 7th late payment – 2{8ee99a90b51e2217d12101096daf2ee9e40c43b9c2fa413e32f91dd0a196a214} penalty charged on the amount paid late
- 8th to 10th late payment – 3{8ee99a90b51e2217d12101096daf2ee9e40c43b9c2fa413e32f91dd0a196a214} penalty charged on the amount paid late
- 11 or more late payments – 4{8ee99a90b51e2217d12101096daf2ee9e40c43b9c2fa413e32f91dd0a196a214} penalty charged on the amount paid late
Now is the time to ensure your payroll systems allow for efficient filing on time and that you are up to date with PAYE payments to HMRC.
Speak to your accountant or payroll bureau for guidance to avoid penalties.