New penalties for late filing of RTI reports

There have been developments which could mean more penalties for late filing of RTI reports. Whereas a late filing of RTI reports would previously have incurred a warning notification, HMRC will now be issuing penalties for late filing from the new tax year.

Since this year is the end of the first year of RTI, if you file a late report after April 2014, it will trigger a penalty, and HMRC is said to be planning to strictly enforce the penalties. Although HMRC has recently offered a reprieve which will apply until 6th April 2016, this is only for employers with nine or fewer employees, including directors. This means that a late RTI report sent by an employer that complies with this rule, will not get a penalty charge.

This only applies to employers that are currently submitting via RTI, any new employers from 6th April 2014, or employers with nine or more employees will face penalties.

Any of our clients who have queries about this should get in touch.