HM Revenue and Customs (HMRC) will not charge employers a penalty for late or inaccurate in-year full payment submissions until April 2014 as part of real-time information (RTI) reporting.
The current penalty policy process will continue to apply at the tax year’s end, with a penalty being charged if the relevant information is not up to date by 19 May 2014.
In 2012-13, inaccuracies on in-year submissions will not be subject to a penalty, but penalties may be applied by HMRC after the end of the tax year, based on the final FPS for the year. From 2013-14, penalties may be charged on inaccuracies identified on in-year full payment submissions.
Employers are required to begin reporting in real time from April 2013. From October 2013, HMRC will send letters to organisations that submitted late or inaccurate information so that employers understand they would have been liable for a penalty.
Suzanne Newton, programme director for real-time information at HMRC, said: “After stakeholder consultation, we have published our guidance on late and inaccurate returns sent in real time.
“This will give most employers a year to get used to reporting in real time before implementing the new penalties.”
