The penalty regime for the late filing of full payment submissions (FPS) under RTI has been in place for some time and was intended to apply to all employers from March 2015. In practice few employers have been charged penalties and there have been a number of relaxations. To date penalties have been issued on a “risk assessment” basis. HMRC have now confirmed that this risk-based approach will continue to apply until April 2017.
HMRC have also confirmed that the three-day grace period for FPS will be extended to 5 April 2017. Under this concession, as long as the employer files the FPS within three days of the date the employees are contractually due to be paid (the payment date), there will be no penalty. However, HMRC say that employers who regularly file late within the three-day grace period will be monitored and may be warned that a penalty could apply. The grace period is only a concession.
Remember, if you do receive a RTI penalty, you can appeal.
If you require further information, or have received a penalty please contact Sherry Taylor on 01689 877081.