Real Time Information Penalties – Starting from 6th April
The new automatic in-year PAYE/NIC penalties for late filing and late payment, plus interest were due to start from 6th April 2014.
HM Revenue and Customs have now announced that they will be staggering the start of Real Time Information (RTI) penalties.
New dates for your diary:
From April 2014 – Interest will be charged on in-year PAYE/NIC payments not made by the due date. 19th of the month by cheque and 22nd of the month by BACS or direct transfer. (Ideally, your payment must have cleared the Revenue’s bank account by these dates to avoid any interest being charged).
Number of defaults in a tax year Penalty Percentage
1 to 3 1%
4 to 6 2%
7 to 9 3%
10 or more 4%
Example: If you paid 4 payments late in the tax year 2013-14. The first late payment would not be counted as a default therefore you would have 3 defaults in total, which means that a penalty of 1% would be due on the total amount of PAYE paid late.
Additional penalties for monthly and quarterly payments over 6 months late.
If you have still not paid a monthly or quarterly amount in full after 6 months you will have to pay a penalty of 5% of the amount unpaid. A further penalty of 5% will be charged if you have not paid after 12 months.
From October 2014 – Automatic penalties on late filing of in-year information. (FPS/EPS)
Number of employees Amount of the monthly filing penalty per PAYE Scheme
1 to 9 £100
10 to 49 £200
50 to 249 £300
250 or more £400
HMRC will use the latest information available to determine the number of employees, and the size of the filing penalty for each period where a return is late.
From April 2015 – Automatic penalties on late payment of in-year PAYE. 19th of the month by cheque and 22nd of the month by BACS, chaps or direct transfer. (Ideally your payment must have cleared the Revenue’s bank account by these dates to avoid any interest being charged).
This extra time will now give employers more time to fully adapt to the changes and give HMRC the opportunity to improve their internal systems and provide better customer support to employers and agents.
To find out how these penalties may affect you contact our Payroll Team or call 0161 249 5040