Sarah Curzon, Tax Director, MHA Broomfield Alexander
Real Time information (RTI) reporting for most employer’s has been with us for over 12 months now and we are all becoming more familiar with the administration of PAYE under the RTI system.
HM Revenue & Customs (HMRC) have been focused on streamlining their systems and ensuring people pay in full and on time. In order to encourage employer compliance there are penalties and interest charges for employers who fail to comply and a new generic notification service (GNS) to forewarn employers of potential penalties.
RTI is complex and it doesn’t work properly all the time, so employers should beware.
Problems in the RTI system and employer’s lack of knowledge of the system will lead to a large amount of penalties together with a large number of appeals to the tribunals – which already have a huge backlog, so the RTI automatic penalty regime has been introduced in stages.