Employers will have more breathing space to implement new salary payment rules with the announcement of staggered penalties for late filing and payment, according to independent chartered accountants, WBV Ltd.
Penalties for late filing and late payment in relation to Real Time Information (RTI) were due to come into force next month, but following HM Revenue and Customs (HMRC) customer feedback the process will instead be spread-out.
Under RTI, which came into force last year, employers are required to electronically submit details of salary payments and deductions as they are made, rather than waiting until the end of the tax year.
Automatic in-year Pay As You Earn (PAYE) penalties for late filing and late payment and in-year interest – charged on tax and national insurance contributions paid late during the year – were due to start from 6 April 2014.
