The RTI shake up is one of the biggest since the introduction of PAYE and will require all businesses to electronically file employee's PAYE payments such as tax and NICs on or before each pay day. Currently this is only completed once each year.
According to HMRC's guidance:
- Penalties for late in-year Full Payment Submissions (FPS) will not begin until April 2014. The current penalty process will continue to apply at the year end, with a penalty issued if the relevant information is not up to date by 19 May. Letters will be issued to employers from October 2013 to ensure they understand they would have been liable to a penalty.
- Automated late payment penalties will not begin until April 2014.
- No penalties for inaccurate in-year FPS will be charged for the 2012-13 tax year.
- Penalties may be charged after the end of the tax year based on final FPS for the year.
- Inaccurate FPSs for the 2012-13 tax year may incur in-year penalties.
- The pilot programme of RTI has seen over 2.1 million individual records submitted from more than 15,000 PAYE schemes to date.
- Further guidance on the penalties for RTI can be found on HMRC's website.
If you need help implementing RTI in your business please get in touch