Late payment Reprieve for MICRO RTI penalties

The existing late payment penalty scheme for PAYE income under real time information (RTI) has been extended to April 2017, following a review by HMRC.

The scheme was due to end 5 April 2016 but the tax authority decided to review the three-day easement and risk-assessed approach and continue the current scheme due to a significant reduction in late returns over the past year.

The risk-based approach will continue, meaning that only employers who have persistently filed their full payment submissions (FPS) late for several months will be issued with a penalty – which can be appealed.