United Kingdom

Key Measure: Real Time Information - Penalties 

KPMG Budget 2013

Description of Measure


The documents published alongside the Budget state that the late filing penalties will be based on the size of the PAYE scheme. The size of the penalty will be based on the number of employees in the scheme, so that different penalties will apply to micro, small, medium and large employers. Each scheme will be subject to only one late filing penalty per month regardless of the number of defaults in the month. There will be one unpenalised default per year.


Legislation will make changes to the late payment regime to ensure it works for Real Time Information (RTI).  The main changes will be that penalties will be based on the number of late payment penalties relating to each tax year, ring fencing each penalty so that when later penalties arise earlier penalties do not have to be recalculated.


Interestingly the Government may use regulations to apply a relief from late payment penalties if the sums paid by the employer do not exactly match the figures as deducted on the RTI returns for the relevant period. This is to stop penalties being issued for minor discrepancies and would seem to be a sensible measure.


HMRC are to continue to consult with business representatives on the impact of RTI. If you wish to make any representations please let us know your concerns.

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