The new automatic in-year Pay As You Earn (PAYE) penalties for late filing and late payment and in-year interest (charged on tax and National Insurance Contributions (NICs) that are paid late during the year), were due to start from 6 April 2014.
Real Time Information (RTI) is a big change and HM Revenue and Customs (HMRC) and some employers are continuing to learn. Having listened to customer feedback, HMRC has decided to stagger the start of the new in-year late filing and payment penalties to give employers more time to adapt to reporting in real time. The new timetable will be:
- April 2014 - in-year interest on any in-year payments not made by the due date
- October 2014 - automatic in-year late filing penalties
- April 2015 - automatic in-year late payment penalties
At the same time, HMRC is continuing to improve its systems and guidance.
HMRC has worked closely with the Department for Work and Pensions (DWP) to ensure that RTI will support the operation of Universal Credit, which brings together means-tested in and out-of-work benefits.
HMRC’s Director General for Personal Tax, Ruth Owen, said:
The introduction of RTI is going extremely well for the majority of employers but there are still some who need a bit of time to adapt fully to the changes. This additional time will give us the opportunity to ensure that improvements to our internal systems are working, to learn from them and to provide better customer support to employers who need more time to adapt.