By Lyndsey Hall
Since the initial launch of the new Real Time Information (RTI) system for PAYE, there have been a few issues reported by users. The new deadline for submitting year-end returns is now April 19th, a month earlier than under the previous system, and this has caused some problems for business owners. As HMRC had announced that there would be no late penalties for the first year under RTI, many businesses assumed that this meant that they could submit their tax returns after the deadline, however when they attempted to do so after April 19th, they were too late.
According to Accounting Web, in their article RTI watch: HMRC moves to calm pilot penalty fears, “Sage advised… that the only way around this was to give HMRC a list of all the payrolls affected. Then when the Earlier Year Update (EYU) facility is available, the employer will have 14 days to submit everything via the government gateway. If this does not happen, late filing penalties will apply.”
The deadline for informing the Revenue that you will be late in submitting your return as a direct result of the new RTI program is May 19th, so there is still time to contact them if you have missed the submission date. However, the EYU function within PAYE software will not be available until the end of May 2013 and, therefore, unfortunately, won’t be ready in time for this year’s deadline.
Some businesses are also having trouble as they have been added to the RTI pilot without being made aware, and have missed the deadline as a result. Unfortunately, any business that has missed the submission date this year will have to call the new HMRC employer helpline (0300 200 3211) and ask them to reset the scheme’s RTI commencement date to 6 April 2013.
If your business is struggling to comply with the new method for tax returns, give us a call and we will be happy to discuss your issues and offer impartial advice to get you back on track.
Let us know what you think of the new RTI method of PAYE in the Comments.
Schedule 56: PAYE Late Payment Penalties