Until yesterday (12th February), UK employers were being told that if they were not submitting payroll returns in ‘real time’ by 6th April they were at risk of a £100 minimum fine from HMRC.
Real Time Information for PAYE legislation was first introduced in April last year but there have been various ‘relaxations’ since then to help some of the smaller businesses get to grips with the new processes.
As you would expect, we’ve been there every step of the way, chronicling each new development on this blog, but there’s a danger that these changes are causing some confusion for small businesses and being used as an excuse not to act.
In response to HMRC’s latest announcement, Neilson Watts (Product Manager, Sage One Payroll) said:
“This extension of the RTI deadline gives businesses some welcome breathing space and should be applauded, but it’s really just a stay of execution.”
“For the majority of firms, RTI represents business as usual. According to HMRC figures 93% of employers and 99% of PAYE employment records are being submitted on time and accurately. The expectation is that all firms should be filling in real time now, and anyone that isn’t needs to act.”
“Late payment penalties for outstanding PAYE and NIC liability have also been extended until April 2015 but businesses will still be charged interest on late payments from April this year.”
“Equipped with RTI compliant payroll software (like Sage One Payroll) that takes care of RTI compliance with a click of the mouse, this doesn’t have to be a massive headache. With only 7% of businesses not currently compliant, we urge them not to use this announcement as an excuse to delay the inevitable.”