HMRC to introduce new timetable for Real Time Information penalties

Employers in Northern Ireland and the UK will be pleased to hear that HMRC have announced a staggered start to the introduction of Real Time Information (RTI) penalties.

Under original plans, in-year PAYE penalties for late filing and late payment and in-year interest were to be automatically imposed from 6 April 2014. HMRC’s revised timetable will give employers more time to adapt to reporting in real time.

The new timetable means that in-year interest on any in-year payments not made by the due date will commence from April 2014, while automatic in-year late filing penalties and automatic in-year late payment penalties will start from October 2014 and April 2015 respectively. Therefore employers who bring all their submissions for the period 6 April - 5 October 2014 up to date by 5 October will not face any in-year late filing penalties.

HMRC have also confirmed that they will still issue late payment penalties manually for 2014-15 but will suspend the issue of electronic generic notification alerts for late payment and non-filing until April 2014.

Liam Coulter, head of tax at Wilson Nesbitt Solicitors commented “HMRC have taken a sensible approach to the RTI penalties. This is a relatively new system for employers to get used to and by introducing the new timetable, HMRC have given employers breathing space to get their RTI procedures in order”.

Wilson Nesbitt Solicitors based in Belfast, Northern Ireland can assist you with RTI and employment related tax queries. If you need to talk with one of our tax advisors please contact us by calling 0800 840 9288.