Have you got to grips with Real Time Information (RTI) filing for your payroll yet? It seems that, if you haven’t, you’re not alone – HMRC’s systems have been struggling too.
A number of firms and their accountants have been receiving notices from HMRC for non-filing…..even though all of the forms have been submitted to HMRC.
From April 2014, HMRC were due to charge fines if you were late filing your RTI payroll forms each month. However, after various accounting bodies and software developers have appealed to HMRC, they have now agreed to delay this.
What is RTI?
RTI is the new system for reporting payroll to HMRC. RTI started on 5 April 2013 and is mandatory for nearly all businesses that employ staff. Under RTI, employers need to report their payroll information to HMRC before paying the employee.
The RTI system gives HMRC current information on all employees and is intended to help in getting tax correct as soon as possible, instead of needing to correct payments at the end of a year. It’s also intended to help with the introduction of the new Universal Credit.
When do the fines start?
To help businesses get to grips with the new system, HMRC had agreed not to impose fines for the first year. However, they were due to start imposing fines from 6 April 2014.
The new timetable is as follows:
- 6 April 2014 – interest will be charged on any payments not made by the due date
- 6 October 2014 – automatic late filing penalties
- 6 April 2015 – automatic late payment penalties
This means that, as long as you get all your submissions in to HMRC by 6 October 2014, you won’t get any late filing penalties.
Of course, we’d still recommend getting them in on time. If you’re struggling, we can help.
If you would like to arrange a free meeting with a Liverpool accountant to discuss business taxes, either at our office or at your premises, please contact us on 0151 724 3960 or by email at [email protected].
Alternatively, you can use our website contact form.
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Added by Jon Davies