19th February 2014
HMRC delay penalties for RTI
If you’ve had letters from HMRC claiming that you’re being fined for late payment due to the new RTI scheme, you may benefit from a delay to the penalty charges.
Despite nothing but positive feedback from Integrity Software customers so far, it seems that other businesses and HMRC are struggling with the rollout of the real-time information (RTI) PAYE system, where employers must report to HMRC every time they make a payment to an employee.
HMRC has announced that it is to delay fines for late filing and late payments under RTI. Automatic fines for late filing and late payments had been due to start from the 6th April – the start of the new tax year. However, HMRC is now adopting a staggered approach to how it will introduce RTI fines.
In-year interest payments on any payments not made by the due date will occur from April, automatic late filing penalties won’t come into effect until October 2014, and automatic fines for late payment won’t occur until April 2015. These changes will give businesses extra time to get to grips with the online interface that HMRC has provided.
The RTI scheme has come under fire from some businesses, with many receiving non-filing notices despite the fact that they filed their details on time. Others are having to report information weekly, even if only the odd exception is made on the normal monthly payment schedule. This is a drain on the time (and money) of many small businesses, who are disproportionately affected by the added red tape.
Integrity Software’s construction accounting software solutions contain RTI-ready payroll modules, so it’s easy for you to remain compliant.
As late payments continue to be an issue, subcontractors take further action to name and shame firms who are not paying them on time.