Small firms exempt from tax penalties

The latest business news from lep.co.uk
The latest business news from lep.co.uk
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Preston-based chartered accountants Rushtons are advising businesses that HM Revenue and Customs has announced that firms with 49 or fewer staff will be exempt from RTI late filing penalties until March 2015.

HMRC’s Real Time Information (RTI) initiative originally required all employers to provide information about tax and National Insurance deductions every time they paid an employee, rather than annually, by October this year.

However after many small businesses complained they were not ready to implement RTI, HMRC decided to postpone penalties until next year.

Neil Calvert, Managing Director at Rushtons, said: “HMRC’s announcement means that until March 2015, small businesses will be allowed to submit PAYE information on a monthly basis.

“However while small firms have been given a period of grace, we would still recommend they get into the habit of submitting information to HMRC on or before payments so they do not fall foul of penalties from March 2015.

“Small businesses should ensure that they have the mechanisms in place to be RTI compliant now before it’s too late.” he added.