April 22 2015.

Penalties now apply to small businesses for late filing of PAYE submissions under the new Real Time Information (RTI) system. However, HMRC has confirmed that there will be a three-day grace period (for all employers) before the penalties are imposed.

The Chartered Institute of Taxation and the Low Incomes Tax Reform Group have welcomed this relaxation mitigating a burden which would have been felt particularly keenly by many of the smallest employers.

Since October 2014, employers with 50 or more employees have been subject to late filing penalties if they send PAYE information to HMRC late. Although HMRC initially intended employers with fewer than 50 employees also to be subject to penalties from this date, an extension to 6 March 2015 was given to smaller employers who needed more time to adapt to the new system.

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