HMRC delays RTI penalties for small employers

HM Revenue and Customs (HMRC) have pushed back the date penalties will be issued to small employers with automated pay-as-you-earn (PAYE) real-time information (RTI).

Companies with less than 50 employees will be exempt from RTI late filing penalties until March 2015. Initially, the date was set for April, 2014 however, was then delayed until October before being delayed again until March next year.

For employers who employ 50 or more staff will face penalties from 6th October 2014.

Ruth Owen, director general for personal tax at HMRC, said “Real time information is working well. Our most recent figures show that more than 95% of PAYE schemes making payments to individuals are successfully reporting in real time, and 70% say that it is easy to do”.

HMRC also added those who have had most difficultly adjusting to real-time reporting have been small businesses, therefore, the planned staged approach will mean these smaller businesses have that bit longer to comply with the new arrangements before facing a penalty.

Tax bodies endorsed the delay, saying it was right of HMRC to recognise that the least resourced firms deserve extra time to become accustomed to RTI.

The Revenue have said they will send electronic messages to all employers in due course to inform them when the penalties will apply to them.

If you have any queries regarding this topic, Orange Genie Accountancy will be more than happy to discuss. Get in touch, email us: or call 01296 468 185 

Request a Call Back


edge promo