HMRC delays RTI penalties for small employers

HM Revenue and Customs (HMRC) has further delayed the date penalties will be given to small employers with automated pay-as-you-earn (PAYE) real-time information (RTI)


Organisations with less than 50 employees will be exempt from RTI late filing penalties until March 2015.

The date was initially set for April 2014, but was delayed to October before being delayed again until March.

It means that employers will be allowed to submit PAYE information monthly until March. 

Those who employ 50 or more staff will face penalties from 6 October 2014.

HMRC will send electronic messages to all employers to let them know when the penalties will apply to them.

Ruth Owen, director general for personal tax at HMRC, said: “Real time information is working well. Our most recent figures show that more than 95% of PAYE schemes making payments to individuals are successfully reporting in real time, and 70% say that it is easy to do.

“We know from our experience of rolling out of RTI that to ensure a smooth transition for employers it’s best to introduce changes in stages.

“This will allow us to update our systems and enhance our guidance and customer support as needed.

“We know that those who have had most difficulty adjusting to real-time reporting have been small businesses, so this staged approach means they have a little more time to comply with the new arrangements before facing a penalty.

“We believe this is the best approach for HMRC and employers as we all get used to the new in-year penalties.”