HM Revenue and Customs has confirmed automated in-year fines for employers who fail to meet PAYE payment deadlines. The new scheme will affect employers with a staff base of 50 or less from 6th March 2015, with those employing more than 50 members of staff facing penalties from 6th October 2014.
If you’re an employer HMRC will notify you electronically as to when the penalties will apply to you and this will be based on the number of employees shown in the department’s records.
This change is due to the rollout of real-time information which sees PAYE reported on or before the date payment is made, with changes being reported as and when they occur instead of at the end of the financial year.
H M Revenue and Customs hope that by creating a transition period and by staggering the introduction of fees dependent on the size of business, that it will give small businesses more time to adjust and comply with the new arrangements before they face a penalty.
In addition to this initial adjustment period, HMRC have launched a new online appeals process for automated penalties and employers can appeal the fee they have incurred where they believe that they have a reasonable excuse for sending a late return.
If you are unsure as to how this may apply to you or you would like to find out more about how Real Time Information applies to you just give us a call on 0141 248 7015 and we’d be delighted to help. Alternatively you can email your query to email@example.com