The taxman has warned over 70,000 employers that they will incur penalties unless they begin sending employees’ PAYE details in real time.
Those employers who have not yet started using the new system will receive an email this week informing them that they must comply with RTI by the end of the year or face accruing penalties.
RTI, which was formally launched in 2013, is the biggest single change to the payroll system in 60 years. Designed to keep up with the increased fluidity of the 21st century labour market, it requires all employers running a PAYE system, including Umbrella Companies, to report all deductions and payments made to the Revenue at the time of their occurrence rather than once at the end of the tax year as was previously the case.
Over 99% of employers are now complying with the new RTI regime.
Penalties for late filing were deferred from April 2014 to October this year, but 19th May is the final deadline for reporting PAYE information if penalties are to be avoided. These will be incurred at a rate of £100 per 50 employees, accruing each month or part-month beyond the 19th May deadline.
The director general for personal tax at HMRC, Ruth Owen said: “Over 99% of PAYE records are being successfully reported in real time and the majority of businesses say they find the new system easy to use, so those who have not begun using the system should not stick their heads in the sand. They need to act now to ensure that they don’t get a penalty at the year end.”