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?

1st March 2013

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

 
Please be aware that HMRC have u-turned on or amended some of their proposals, so the above rules are subject to change.

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.

By Jo Nockels

Disclaimer: Advice shared in this blog is intended to inform rather than advise. 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 forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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