HMRC issued a warning today to over 70,000 employers who are still not filing employee PAYE information via the new RTI (Real Time Information) method.
Heralded as the largest update to the way employee pay information is processed, RTI allows employers and pension providers to report pay and deduction data to HMRC at each payroll run - rather than an annual end of year report, as was previously the case.
RTI was launched two years ago, but now has 99 percent subscription. Providing data via RTI allows tax codes and therefore deductions to remain accurate, reducing errors leading to rebate claims later. It also supports the new Universal Credit benefit system.
Employers were allowed a grace period at the start of the 2013 tax year for 12 months, which means they need to start filing using RTI by 19 May 2014 at the latest - else fines of at least £100 or more, depending on number of employees (£100 per 50 employees), could be applied.