Employers who have failed to follow the new real time information (RTI) reporting process for PAYE have been urged to act now by HM Revenue and Customs (HMRC).
More than 1.6 million employer PAYE schemes, covering over 40 million individual records, are already reporting in real time following the launch of the new requirements in April.
However, this month around 167,000 employers who have missed one or more deadlines for reporting PAYE will receive a letter reminder from HMRC. Employers that have not reported because they no longer pay anyone, the PAYE scheme has closed or it is no longer operating are still required to inform HMRC by calling the Employer Helpline.
Employers who have already missed a deadline for reporting PAYE information will have received a letter reminder in June. HMRC also wrote to all UK employers in October 2012 and February 2013 to let them know how to prepare for RTI reporting.
Ruth Owen, HMRC’s director general for personal tax, said: "Over 85 per cent of employers are now reporting PAYE in real time but our records show that 167,000 employers have yet to send us a PAYE submission.
"Reporting PAYE in real time makes it easier for employers to pay HMRC the right amount and avoid late payments and penalties.
"If agents have set up, on behalf of their clients, PAYE schemes that have never been used – or their clients’ PAYE schemes have now ceased – they should call HMRC to close the scheme."
RTI represents the most significant change to the UK’s payroll system in over 60 years. It is designed to better reflect the fluidity of the labour market in the 21st Century, delivering improved accuracy to both employers and employees.
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