HMRC is continuing its RTI penalty concession. Employers have an extra three days to report their payrolls online...until 2017.

Under the late filing penalty system for Real Time Information Reporting (RTI) HMRC has always operated a concessionary grace period. This was due to end in April 2016, however many employers in different parts of the country still lack a decent broadband connection and IT skills.

HMRC's notice:

"PAYE late filing penalties - continuation of 3-day easement and risk-based approach to charging penalties

Following a review of the three day easement and risk-assessed approach adopted last tax year which has seen a significant reduction in returns filed late, it has been decided to continue this approach for a further tax year. As a result employers will not incur penalties for delays of up to three days in filing PAYE information during the 2016-17 tax year.

Late filing penalties will continue to be reviewed on a risk-assessed basis rather than be issued automatically.

The three day easement is not an extension to the statutory filing date which remains unchanged. Employers are required to file on or before each payment date unless the circumstances set out in the ‘sending an FPS after payday guidance’ are met. HMRC won't charge a late filing penalty for delays of up to three days after the statutory filing date, however employers who persistently file after the statutory filing date but within three days, will be monitored and may be contacted or considered for a penalty.

HMRC will continue to review their approach to PAYE late filing penalties beyond 5 April 2017 in line with the wider review of penalties and will continue to focus on penalising those who deliberately and persistently fail to meet statutory deadlines, rather than those who make occasional and genuine errors for which other responses might be more appropriate."

Links: Practical Tax Guides

Do you like our webservice? Join hundreds of firms of accountants and Sign Up Now for FREE Nichola's SME tax-updates

tax dog

Do you need Virtual Tax Partner® support?

Paying too much tax? Need assistance in preparing your tax return? Advice on a tax efficient pay package? Create a family investment company? Appeal a tax penalty?

Support, mentoring and a human to help you.

Any other tax problem? Contact Virtual Tax Partner ® support.