RTI penalties

Newsletter issue - July 2015.

Employers are supposed to be warned in advance that a penalty for a late PAYE report is due. The HMRC computer system should send an electronic notice through the PAYE online system, but in some cases those electronic notices have not arrived. If you have received a late filing penalty for PAYE we need to check if any of the following conditions apply:

Three-day grace period

In February 2015 HMRC announced that full payment submission (FPS) reports could be submitted up to three days after the day on which the employees were paid. This change was supposed to apply retrospectively for the whole of 2014/15, but in some cases that three-day grace period has been ignored and a penalty has been issued.

Wrong penalty period

Late filing penalties are not due for employers with less than 50 employees for months 1 to 11 in 2014/15. So if you have less than 50 employees and you have received a late filing penalty for a month other than month 12 in 2014/15, it's wrong. Similarly, an employer with 50 or more employees should not receive a late filing penalty for periods before 6 October 2014.

One late submission

Employers with 50 or more employees were permitted to make one late real time information (RTI) submission in 2014/15 without incurring a penalty, so if there has been only one late return (which was over three days late), there should be no penalty.

All incorrect penalties need to be appealed as soon as possible using the online penalties and appeals service (PAS), which is available through HMRC's PAYE online system. We can do that for you, but we will need the unique ID code on the penalty notice to submit the appeal.

You don't have to pay the penalty while any appeal against it is under consideration. Of course, if the penalty is cancelled on appeal it doesn't have to be paid at all.

What our clients say about us...

  • "Paul has provided accountancy services to my company for 2 years now. I can recommend Paul very highly; his skills as an accountant are highly detailed and professional and he is always available to provide advice. One aspect of the way Paul works that I greatly appreciate is a preference to meet face to face when there is a detailed conversation to be had. I personally find this more productive and is a benefit of working with a small accountancy firm that you wouldn't get with the large faceless providers."

    ALISTAIR FAIRWEATHER - PROGRAMME & PROJECT MANAGER, DELIVERING/RESCUING I.T. 7 BUSINESS CHANGE WITH BUDGETS UPTO £50M INC SUPPIER MANAGEMENT

  • "I couldn't ask for more from Paul as an Accountant. Paul has been accountant to Work Relief Charity Recruitment for just over a year now and is proving an invaluable asset. Accurate, knowledgeable, flexible with an emphasis on service delivery, I would recommend Paul's services to any organisation looking for an accounts professional."

    Neil Price - Managing Director at Work Relief Charity Recruitment

  • "Paul was a referral from a family member when I started my business 2 years ago. As this was the first time I had ever run my own company I was totally clueless over the financial side of matters and was worried that I may have made mistakes in any of my accounting. I needn't have worried as after enaging Paul for a set monthly fee he was always there on the end of the phone for all sorts of questions I had and no matter how trivial they were Paul gave me all the information I required and more and did an excellent and painless job at the end of my first year! Couldn't ask for any better to be honest. Just two words - hire him!!!"

    Lee Westrap MBCS - Director - Bulldog IT Services

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Booth & Co  |   The Hermitage  |   15a Shenfield Road  |   Brentwood  |   Essex  |   CM15 8AG        Telephone: 01277 224666    |   Email: info@boothandco.co.uk