Six months since the introduction of real time information (RTI), HMRC has launched a consultation into the legislative changes required to set up the penalties regime, direct collection service and rules for exempt employers.

The two-month consultation, Legislative changes relating to Real Time Information, is open until 24 January 2014.

HMRC is seeking feedback on the changes to be made to the PAYE Regulations for the penalty scheme for late filing; direct collection schemes and employers exempt from online filing; and the provisions needed in the PAYE, NICs and the Construction Industry Scheme (CIS) regulations.

Once feedback is reviewed, the next step will be secondary legislation with the publication of statutory instruments.

Draft PAYE regulation (67I) has already outlined the scope of the penalties:

£100 for schemes with one to nine employees;

£200 for schemes with 10 - 49 employees;

£300 for schemes with 50 - 249 employees; and

£400 for schemes with 250 or more employees.

New employers will be given a 30-day grace period before penalties are issued under Regulation 67K. In effect, this means that a new employer will not receive a late filing penalty provided he files the first RTI return within 30 days of making the first payment to an employee.

The draft regulations are available HERE and the comment period closes on 24 January 2014. All comments should be emailed to [email protected]