HMRC Unveils the Latest RTI Penalty Plans

Real time reporting of payroll data starts in full next April and tough penalties for the employers that don’t comply have been announced by HMRC

From April 2013, employers must send, details of salary, tax deducted, NI, etc. to the HMRC each time they pay an employee, instead of just at the end of the tax year. One advantage to this is that you won’t need to complete the end of year tax return forms P35 or P14. However, the problem is that there are tough new penalties for missing real time information (RTI) deadlines.

HMRC has already issued a lengthy consultation paper suggesting how and when the new penalties would apply. HMRC wants these to be automatic with little room for an appeal. However, due to severe pressure laid on HMRC, on November 29 he announced that late notification penalties won’t apply for the first year of RTI. Instead, the HMRC will work on a fair and practical way for these to be imposed from April 2014.

For more advice on RTI, contact a accountant with specialist payroll knowledge. KVS acts as payroll accountants in Putney, Fulham, Barnes, Wimbledon, Hammersmith, Battersea, Kensington and Clapham.

 

 

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