So we wrote last month about the RTI Relaxations that the HMRC have decided to put a stop to as of 5th April 2016. Both concessions; one that there would be no penalty if the RTI report was done no more than 3 days late, and the other that no penalty would be issued if Employers with no more than 9 people on the payroll could report just once a month (regardless of when they paid their employee’s) were to be scrapped. Employers now had to ensure that the reports were to be submitted on the specific date to make sure no penalties would fall into their laps.

We also mentioned that the HMRC would be reviewing this situation at the beginning of the tax year 2016 – 2017, but it never happened …

However! Better late than never! HMRC have reviewed and updated its guidance ‘What payroll information to report to HMRC’ and has decided to extend the first concession. This is great news for employers as this means that a penalty won’t be issued if a report is submitted no more than 3 days late and gives them that extra bit of leeway with submissions and also shows that the HMRC are taking into account the struggles that Employers may be experiencing since the start of the RTI. It has been extended until 5th April 2017 so applies to the tax year 2016 – 2017 but after this current tax year, we are unsure as to whether they will carry on the concession.

As well as this concession being extended, the guidance also includes some other examples and situations where the HMRC won’t hit you with a penalty so why not take a look via the link below to update yourself on what extra elbow room you have with regards to submissions:

Again, if we have any more updates on the longevity of the extended concession or any more concessions, we will keep you updated! But in the mean time, any questions on payroll or RTI submissions, just give us a call and we will help you out.




Information from ‘Tips & Advice Tax – 16th Year, Issue 18′