RTI Penalties for Late and Inaccurate Returns Confirmed

07 - 12 - 2012

Many employers faced with the challenge of incorporating the new Real Time Information, or RTI, system into their businesses have been asking whether they will be penalised if they make a mistake or file a return late.

If you are one such employer, you will be glad to know that HMRC has now published guidance on late and inaccurate returns for 2012-13 and 2013-14.

Late Returns for 2012-13 and 2013-14
It has been confirmed that there will be no change to the penalties for late filing of returns for the tax years 2012-13 and 2013-14 and the current penalty regime will continue to apply at the year end. In these tax years, employers will not be charged penalties for sending FPS (Full Payment Submissions) late, apart from the final FPS for an employee in the tax year.
To ensure that employers operating PAYE in real time are treated consistently with those operating traditional PAYE, HMRC will allow certain limited easements for tax years 2012-13 and 2013-14 as follows
 - no penalty will be charged for late filing if the final FPS for an employee is submitted by 19 April. You cannot submit an FPS after 19 April.

 - after 19 April, you can submit an Earlier Year Update (EYU) by 19 May and avoid a penalty.
Late returns for 2014-15 onwards
Details of how penalties will be charged automatically from April 2014 will be published in due course.
Penalties for inaccurate returns 2012-13 and 2013-14
2012-13: For the tax year 2012-13, HMRC will not charge penalties for inaccuracies identified on in-year FPS. But penalties may be charged after the end of the tax year, based on the final FPS for the year.

2013-14: Penalties for inaccuracies may apply to in-year returns from the 2013-14 tax year.
Further Information

Employees of Foremans (UK) Ltd can be assured that we will implement the correct systems and procedures to manage the introduction of RTI when the time comes.

Clients of Foremans LLP will be kept fully up-to-date with the implementation of RTI and how their businesses may be affected.

However, if you have any questions or concerns about how RTI will affect you, please do not hesitate to contact us on 01244 625 500.
To read the full guidance on penalties relating to RTI, click here (link:






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