HMRC’s long-running “soft landing” for the RTI regime took another few steps this morning when it announced a number of concessions to reduce the number of late payment and late filing penalties.
Automatic RTI penalties for late PAYE payments were due to start from 6 April, but HMRC said it will now continue to “risk assess” these penalties rather than issuing them automatically.
The department confirmed that automatic penalties for filing RTI submissions late will start from 6 March 2015, but has opened a new three-day concession for those who missed monthly full payment submission (FPS) filings since last October.
FPSs are due by the end of the tax month (6 March), but any employer hit with an in-year late filing penalty between 6 October 2014 and 5 January 2015 where they were less than three days late can appeal online against the penalty by completing the “Other” box and adding “Return filed within 3 days”.
To further reduce the number of unnecessary penalties issued, HMRC will also close around 15,000 PAYE schemes in March that have not made a PAYE report since April 2013 and which appear to have ceased.