There have been some further changes which are starting to impact upon PAYE compliance for tax year 2014/15 and onwards, so I thought it may be handy to write a post to give you insights into these aspects. These work alongside the Real Time Information (RTI) structures which HMRC introduced in April 2013.
New interest and penalties
- April 2014 – in-year interest on any in-year payments not made by the due date;
- October 2014 – automatic in-year late filing penalties; and
- April 2015 – automatic in-year late payment penalties.
Employers who bring all their submissions for the period 6 April – 5 October 2014 up to date by 5 October will not face any in-year late filing penalties.
Employers will be able to see the amount of interest accruing in their online tax account but HMRC won’t seek payment until the debt is settled.
From April 2014 HMRC will introduce a new RTI ‘Late Reporting Reason’ data item which will allow employers to tell HMRC why they are submitting data late.
HMRC will still issue late payment penalties manually in 2014/15, as in previous years. This potentially includes the issue for earlier years. In future, these penalties will be automated.
Level of penalties for late Real Time Information (RTI) returns
For the purposes above, an employer who, during a tax month, fails to make a return on or before the filing date will be liable to a penalty as follows:
- 1-9 employees – £100;
- 10-49 employees – £200;
- 50-249 employees – £300; and
- 250 or more employees – £400.
This includes annual schemes.
There are many ways to incur a penalty. If you are finding the RTI system a challenge each month, why not let our payroll team take the strain and ensure that your returns are accurate and on time each month. Give us a call on 01788 577613 (Rugby office) or 01908 564701 (Stony Stratford) and ask us how we can support you – so that you can focus on running your business with one less headache.
Good record keeping is very important
Good records help keep track of where you have spent your money. Without accurate records it will be tricky to work out what comes from where and very difficult to provide accurate accounts. You may need this information for all sorts of things i.e. pay the right amount of tax and not too much, save time and accountancy fees, a bank loan or credit applications also to see what is happening with your business.
If you are struggling to keep on top of your records, give our friendly bookkeeping a team a call and ask for some tips on how to ensure you keep track of your outgoings – 01788 577613 (Rugby office) or 01908 564701 (Stony Stratford). Or ask a question below and we’d be happy to help with some tips and tricks to keep your paper under control (and therefore your money)