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When do RTI payroll penalties begin?

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RTI-readyTo allow employers to adjust their payroll practices HMRC have given one extension after another, plus different deadlines to different size employers. But when are small businesses (micro employers) required to be fully RTI compliant?

They fall into two categories:

EXISTING EMPLOYERS

Existing employers with 9 or fewer employees who need more time to adapt will be able to report PAYE information on or before the last pay-day in the tax month until April 2016.

This largely applies to weekly payrolls that are reported en-masse at the end of the month. The practice is acceptable until April 2016.

If your monthly payroll submissions are behind then all employers are required to be up-to-date by 5 October 2014 after which late filing penalties will apply.

NEW EMPLOYERS

Those just beginning to employ people have no such grace. You must make RTI submission on or before any payments are made to employees (weekly or monthly).

However even new employers have until 5 October 2014 to make sure all previous weeks / months payroll submissions have been made.

RECOMMENDATIONS

If you’re payroll isn’t yet operating in RTI get in-touch soon!

In either case it is advisable to move employees on to being paid monthly. This will cut down the admin and likelihood of making a late submission.

Source info: http://www.hmrc.gov.uk/news/news091213.htm http://www.hmrc.gov.uk/payerti/reporting/late-reporting.htm#3

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