As part of the transition to in-year PAYE Real Time Information (RTI) penalties for late and non-filing, HMRC plans to issue multiple penalty notices for the same PAYE non-filing default, which will affect tax years 2012-2013 and 2013-2014.
For tax year 2012-2013, HMRC will now not issue a third penalty notice to those employers who have not yet submitted their 2012-2013 return which was due on 19 May 2013. The first two penalty notices would have been sent out in September 2013 and January 2014, and HMRC will pursue any missing returns by virtue of these first two notices.
For tax year 2013-2014, HMRC will write to employers who it believes have yet to submit their 2013-2014 return, due on 19 May 2014, to alert them to take immediate action in order to avoid any penalty that is due from building up any further.
In addition, in September 2014, HMRC will send a penalty notice to employers who have not filed their 2013-2014 return. No further 'interim' penalty notices for outstanding 2013-2014 returns will be issued and HMRC will pursue any missing returns through the September notice.
HMRC says this approach will prevent any confusion between the end-of-year penalties currently in operation and the new in-year penalties which are due to start in October 2014, with the first quarterly penalty notices scheduled for issue in January 2015.
Full details are available at http://www.hmrc.gov.uk/news/penalty-notice.htm