Wednesday 10 September 2014

HMRC Delays SME Late Filing Penalties


In theory, as from 6 October, HMRC were to have introduced late RTI filing penalties for PAYE for all companies.

However, the great laid plans of mice, men and HMRC are prone to fall apart. As such, it should come as no surprise top learn that the late filing penalty regime for businesses with less than 50 employees has been delayed until 6 March 2015.

HMRC have put a gloss on this, by saying that it will ensure a "smooth transition" etc.
"Employers with fewer than 50 employees will face automated in-year penalties for late real-time PAYE returns from 6 March next year. 

Those who employ 50 or more people will face penalties from 6 October 2014. 

HM Revenue and Customs (HMRC) will send electronic messages to all employers shortly to let them know when the penalties will apply to them, based on the number of employees shown in the department’s records. 

Ruth Owen, HMRC Director-General for Personal Tax, said:

”Real Time Information is working well. Our most recent figures show that over 95% of PAYE schemes making payments to individuals are successfully reporting in real time, and 70% say that it is easy to do.

“We know from our experience of rolling out of RTI that to ensure a smooth transition for our customers it’s best to introduce changes in stages. This will allow us to update our systems and enhance our guidance and customer support as needed. We know that those who have had most difficulty adjusting to real-time reporting have been small businesses, so this staged approach means they have a little more time to comply with the new arrangements before facing a penalty. 

“We believe this is the best approach for HMRC and our customers, as we all get used to the new in-year penalties.” 

Where employers believe they have a reasonable excuse for sending a return late, they will be able to appeal using HMRC’s new, online appeals process for automated penalties. This should speed up the appeal process for businesses and HMRC. 

In the run up to March 2015, HMRC will examine other ways to encourage employers to comply with the rules, in addition to financial penalties."
The reality is that this is the third delay. As Elaine Clark says, this is great news for SME's.

However, what the fark is really going on in the HMRC bunker?

Smells of cock up to me!


Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

4 comments:

  1. They Just Lie and Lie and Lie - HMRC is run by incompetants and liars.

    ReplyDelete
  2. Does make one wonder, is there some pressure being applied from HMG as a result of recent RTI failings or is it simply realisation from within HMRC that they simply cannot keep demanding money that is not due because it has already been paid or was never due in the first place? Credibility being at an all time low and parallel with performance perhaps the prayers and hymns will have to include the likes of some old favorites such as 'Will your software hold', 'He who would SME be', or, for the Lean evangelists, 'We are the Pilgrims, Master, we shall go. Always a little further.'?
    (with obvious apologies to who or whatever is up there, and the gentlemen from Hereford!);)
    RTI must be far worse than imagined Ken, perhaps a pontificating post from 'StooGe' will enlighten & brighten our darkness?:)

    ReplyDelete
    Replies
    1. "StooGe"

      So you've figured out why I chose this pseudonym. No flies on you.

      No pontification from me today, either. I try to only comment on topics I know a bit about. I realise, of course, that such restraint isn't really the done thing around here.

      Stew G

      Delete
    2. Stop swimming up the chum slick and taking the bait!;)
      Your views are respected.

      Delete