Questions and Answers
RTI - what are the rules with regards to penalties?
I have been trying to keep abreast of all the changes being introduced as part of RTI, but I am really struggling to understand the penalty regime. Can you explain it to me please?
Under Real Time Information (RTI), employers will send HMRC information about employees' pay when- or before payments are made. This should mean more employees will pay the right amount of tax and National Insurance in the tax year.
Unless you are already operating RTI as part of HM Revenue & Customs’ (HMRC) pilot, the rules can be summarised as follows:
|
|
2012/13 |
2013/14 |
2014/15 |
|---|---|---|---|
|
Missing payment penalties No payment to HMRC is made |
Yes |
Yes |
Yes |
|
Underpayment penalties A payment is made, but it is less than the liability due |
No |
Yes |
Yes |
|
In-year late filing penalties For late in-year submissions |
No |
No |
Yes |
|
Year end late filing penalties For late year end Full Payment Submissions |
Yes |
Yes |
Yes |
|
Inaccuracy penalties - for inaccuracies specifically with a year end period |
Yes |
Yes |
Yes |
|
Inaccuracy penalties - for inaccuracies specifically within an in-year FPS |
No |
Maybe |
To be confirmed |
RTI is being introduced in April 2013 and will mark the biggest change to payroll since the 1940s. If you would like any assistance during the transition into RTI reporting or ongoing assistance, please feel free to get in touch with your local TaxAssist Accountant.
Date published 1 Mar 2013
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.Choose the right accounting firm for you
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