HMRC to reduce number of RTI late payment penalties

18 February 2015

For late PAYE payments, HMRC is due to issue automatic penalties from 6th April, however the government department has now said it will review payment defaults and ‘risk assess’ the situation before issuing any automatic fines. 

Penalties for filing RTI (Real Time Information) late will still go ahead from the 6th March 2015 but there will also be a three-day concession for employers who missed full payment submission filings (FPS) since October. Those who paid less than three days late can appeal online.

HMRC are also planning to close approximately 15,000 PAYE schemes which haven’t been filed since 2013 and have most likely been stopped. 

The department has taken this approach as it recognises the digital RTI system is still taking some time to get used to and some employers are still getting to grips with it. Of course, as with all technology, there will probably be small errors in the system which could lead to stressful situations and often late payments. Some are worried the time it could take to resolve or appeal penalties will only add to the mounting pressure.