10 Jun 2016
The recent concession for returns submitted late under the new Real Time Information (RTI) regime is to be extended until April 2017, HM Revenue & Customs (HMRC) has revealed.
Under RTI legislation, employers are required to make a full payment submission (FPS) detailing payments made to employees, on or before the date of payment.
Businesses that fail to make their submissions on time are liable to automatic penalties.
However, to help employers adjust to the new rules, a ‘three day easement’ rule was introduced in 2015, meaning that FPS’s submitted up to three days after the statutory filing date are not liable to a penalty.
The concession had been due to end in April 2016, but in a recent statement HMRC said this relaxation will now be extended until at least 5 April 2017.
The tax authority has also confirmed that it will continue to take a ‘risk-based approach’ to RTI late filing penalties, so that only those employers who have consistently filed their FPS late would be subject to a penalty.
RTI late filing penalties are set to be subject to significant reform from April 2017, as part of a wider review of the HMRC penalty system.
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