Avoid HMRC penalties

Avoid HMRC penalties

HMRC is getting tougher!

The introduction of RTI (Real Time Information) was one of the most significant changes to payroll reporting and whilst HMRC has given time for employers to familiarise themselves with the processes that leniency is about to disappear in 2014-15.

There are still employers who should be reporting PAYE in real time, but haven’t, who will be receiving emails from HMRC warning them that they may face penalties at the end of the 2013-14 tax year if they do not act now. These emails follows-up warning letters issued to these employers in June and September 2013 telling them that should start reporting their PAYE in real time as soon as possible.

For those yet to report in real time HMRC have an ActNow (https://www.hmrc.gov.uk/actnow/index.htm) webpage which provides details on options including HMRC Recognised payroll software solutions.

As well as possible penalties for those who should be reporting by RTI, and aren’t, there are new penalties that will apply to late filing of returns due from employers for the tax year 2014-15 onwards. HMRC has deferred starting these penalties until 6 October 2014 to give both HMRC (read into that what you will!) and employers more time to adapt to reporting in real time.

New in 2014-15 reporting is the ability, if submitting a FPS submission late, to select the reason for late filing (from HMRC defined reasons). Those reasons, if your software solution is so designed, should be available for a full FPS submission or against an individual employee.

How do you best avoid the potential of penalties?

There is, we suggest, no question as to whether or not you should be using a payroll solution especially given the more onerous reporting requirements that the introduction of RTI has meant but do they help you to avoid late penalties?

Whilst no solution can guarantee that you run payrolls in a timely manner, Liberty Accounts have put options in place to minimise any potential of late filing penalties. These include: system warning when payrolls should be run; auto-filing of FPS (Full Payment Submission) on due date(s); and a ‘calculate forward’ feature where payrolls can be run for the remainder of the PAYE year which are then, with the option selected, auto-filed.

Liberty Accounts integrated bookkeeping and payroll solution provides many innovative features to assist British business in their reporting requirements with payroll options just one small illustration.

To help avoid HMRC penalties look no further.

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