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.”
CIPP comment
The CIPP is delighted the Minister, David Gauke and HMRC has listened to the concerns of the payroll profession and welcomes the delays to the RTI penalty regime. We fully support the 6 month delay of the filing penalties and the 12 month delay for the late payment penalties. This additional time will allow both employers and HMRC to iron out all the teething problems being experienced by employers, particularly around the payment reconciliation process without the fear of financial implications. The CIPP is supportive of real time information but it has to be fit for purpose and whilst employers are grappling with queries around what HMRC believes it has received versus what the employer has sent, it was crucial further time was given to sort these issues out. The CIPP also hopes this will allow more time to improve the dashboard employers use to see where payments have been allocated. The CIPP would like to extend a big thank you to all those who took the time to complete our survey on this subject. Without this type of evidence to present to HMRC, it is extremely challenging to contest decisions which we know will be detrimental to the profession.
You can read the views of respondents and the full CIPP response to HMRC through our news item below.
The CIPP lobbies HMRC to delay RTI penalty regime - 23 January 2014
HMRC on YouTube to help employers with their final 2013-14 PAYE submission
5 March 2014
HMRC has published a 3-step guide on YouTube to help employers make a successful final real time information PAYE submission.
Follow this link to view the guide
CIPP Policy News Journal
16/04/2014, Page 358 of 519
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