RTI changes can be confusing for everyone

25 March, 2015

HM Revenue & Customs has agreed to delay the introduction of automatic penalties for limited companies and other employers switching over to Real Time Information (RTI).

Automatic penalties for late PAYE payments were due to start from 6 April, but HMRC said it will now continue to “risk assess” these penalties rather than issuing them automatically.

The delay is designed to give employers a bit more time to adapt to the RTI system, which requires them to report payments and deductions to the Revenue on or before they are made.

It also affords tax staff a chance to improve RTI systems and guidance, in line with concerns that the former has “problems” and that employers are yet to “get to grips” with the latter.

The department also confirmed that while automatic penalties for filing RTI submissions late are now in force, it has opened a new three-day concession for those who missed monthly full payment submission (FPS) filings since last October.

The announcement of the relaxations of the automated penalty regime suggests that HMRC is continuing to wrestle with RTI data validity issues.

Therefore, you could save significant time and money by outsourcing your payroll to a specialist provider.

At Watson Buckle our fast, efficient and cost-effective payroll bureau provides a tailored service to businesses of all sizes, regardless of how often their payroll is run.

If you would like to find out more about RTI and our dedicated payroll services, please contact us.