More than 10,720 employers in the North West are being urged to send employees’ Pay As You Earn (PAYE) information in real time or face penalties, HM Revenue and Customs (HMRC) has announced.
Employers who have never used the new system to file PAYE returns in real time are being sent an email this week telling them to do so by the end of the year. As in previous years, if they don’t send HMRC their PAYE information at the end of the year they face penalties of at least £100. The penalty will depend on their number of employees and the length of time involved.
HMRC’s Director General for Personal Tax, Ruth Owen, said: “Over 99 per cent of PAYE records are being successfully reported in real time and the majority of businesses say they find the new system easy to use. So those in the North West who have not begun using the system should not stick their heads in the sand. They need to act now to ensure that they don’t get a penalty at the year end.”
Employers who no longer need their PAYE schemes should tell HMRC as soon as possible. HMRC has lots of help and support for employers on its website.
PAYE schemes that pay their employees only annually, and which are registered with HMRC as annual schemes, should also make sure that they are ready to send their PAYE information to HMRC by the deadline.
For more information go to: www.hmrc.gov.uk/actnow
Real Time Information (RTI) represents the biggest change to the payroll system in over 60 years. It is designed to reflect the labour market fluidity of the 21st century and deliver improved accuracy to employers and employees. RTI means employers and pension providers report deductions and payments they make to HMRC at the time they are made, rather than after the end of the tax year, as was the case before. This enables the tax system to better ensure the right tax is being taken at source.