Background
17.Under RTI, employers are required to provide HMRC with pay and deduction details on or before they pay their employees (unless the PAYE Regulations provide otherwise). The majority of employers will do this via their payroll software.
18.The increased frequency of returns under RTI could lead to an increase in the number of inaccurate returns submitted by employers. When an inaccuracy is made on an RTI or Construction Industry Scheme return and is repeated in subsequent returns, this legislation allows HMRC to notify the penalties together rather than individually, as would be required under the current provisions.
19.If the pay and deduction information is not received within the statutory period then a late filing default will arise. This may lead to a late filing penalty under the provisions inserted into Schedule 55 FA09 and described above.
20.PAYE payment obligations are not changing under RTI. All employers must continue to pay HMRC the sums deducted from the payments to their employees within 17 days after the end of the tax period where payment is made by an approved method of electronic communications, or within 14 days after the end of the tax period where payment is made by any other means. If these payments are not received in full and on time a late payment default will arise, which could lead to a late payment penalty. From April 2014 these late payment penalties will be automated and will be charged in-year, rather than after the end of the tax year.
