When the system was introduced, it was anticipated that it wasn’t going to be easy for employers and that there were going to be problems. One of which was the issue of the RTI report having to be submitted on or before the date an employee was to be paid.

Many employers indeed found this difficult to comply with for numerous reasons, so the HMRC introduced two concessions which meant a penalty would not be issued if:

  • An RTI report was done no more than 3 days late;
  • Employers with no more than 9 people on the payroll could report just once a month, regardless of when they paid their employees

However, HMRC have made the decision to scrap these concessions as of 5th April 2016. So neither of these apply and employers must ensure that reports are submitted on the specific date, otherwise consequences of not complying with this will result in a fine of at least £100 for the second and subsequent times of any late reports.

It was promised by HMRC that the situation would be reviewed at the beginning of the tax year 2016 -2017 but this never happened.

Therefore, make sure those reports are submitted in time to avoid those fines that you may get hit with, gone are the days of a bit of lenience … But, if any updates arise or the review eventually happens, we will make sure you are updated too.

For any advice on payroll and RTI’s, just give us a call!



Information from ‘Tips & Advice Tax – 16th Year, Issue 14′