New timetable for RTI penalties and interest
When PAYE (RTI) legislation was introduced from 6 April last year the proposed automatic penalty and interest charges were delayed for one year in order that Employers would be provided time to adapt to the changes involved with online filing of Real Time Information.
There have been some problems in the first year of RTI and HMRC have recently announced that the introduction of the automatic penalties and interest will be phased in over the coming tax year. This is after consultation and feed back from Employers etc concerning the operation of RTI.
The time table for these changes will be:
- April 2014 – ‘in-year’ interest on any ‘in-year’ payments not made by due date (see below);
- October 2014 – automatic ‘in-year’ late filing penalty; and
- April 2015 – automatic ‘in-year’ late payment penalties.
Interest from 2014/15
‘In year’ interest will affect Employers on any late payments (see below) in 2014/15, starting from the first payment date of 19 May 2014. HMRC will issue a late payment interest charge notice when the employer has paid the outstanding PAYE in full.
| Charge 2014-15 | Interest charged from dates below to date payment made in full |
| PAYE tax and Class 1 NIC charges and Construction Industry Scheme payments | 19th of relevant month/quarter for all cheque payments and 22nd of relevant month/quarter for all electronic payments |
| Earlier Year Update | 19 April for all cheque payments and 22 April for all electronic payments |
| Penalties | Relevant due date of the penalty charge |
| Class 1A NIC charges | 19 July for all cheque payments and 22 July for all electronic payments |
| Class 1B NIC charges | 19 October for all cheque payments and 22 October for all electronic payments |
For further details see HMRC help sheet PAYE/NIC etc Interest - Helpsheet
We will detail the late filing penalties due to be introduced in October 2014 nearer this date.
Please contact us for further advice.
