RTI automatic penalties for small employers delayed to 2015

National Insurance, Payroll l

article-2284938-17AE137D000005DC-727_296x224HMRC has announced that the introduction of automatic penalties for late RTI submissions will be delayed for a further 5 months for smaller employers.

Under the revised timetable announced back in February, automatic penalties were due to start from 6 October. This date will still apply for companies that employ 50 or more people, but smaller companies will get an extra five months until the automated regime starts to bite from 6 March 2015. 

The Revenue said it will send electronic messages to all employers shortly to let them know when the penalties will apply to them, based on the number of employees shown in the department’s records.

Ruth Owen, HMRC director-general for personal tax, said that RTI is “working well”.

”Our most recent figures show that over 95% of PAYE schemes making payments to individuals are successfully reporting in real time, and 70% say that it is easy to do.”

HMRC added that where employers believe they have a reasonable excuse for sending a return late, they will be able to appeal using HMRC’s new online appeals process for automated penalties.

It added it would look at other ways to encourage employers to comply with the rules, in addition to financial penalties, in the run up to March 2015.