Partly Cloudy

Partly Cloudy

max temp: 20°C

min temp: 12°C

ESTD 1874 Search

East Anglia: More than 3,500 employers could face PAYE penalties, HMRC warns

09:00 21 March 2014

HM Revenue & Customs has warned employers not yet using its "real time" system for filing PAYE data that they face penalties if they miss the deadline for sending an annual return.

HM Revenue & Customs has warned employers not yet using its "real time" system for filing PAYE data that they face penalties if they miss the deadline for sending an annual return.

More than 3,500 employers in East Anglia which have yet to adopt the taxman’s new system for filing Pay As You Earn (PAYE) Income Tax data are being warned that they could face a fine.

shares

HM Revenue & Customs (HMRC) is launching an email campaign targeted at employers who are not yet using the system to file PAYE returns as and when tax is deducted rather than at the year-end.

The Real Time Information (RTI) system, which began in Apil 2012 with a pilot scheme involving just 12 employers, is described by HMRC as the biggest change to the payroll system in more than 60 years.

It involves employers reporting PAYE deductions from salaries and wages and payments to HMRC at the time they are made rather than after the end of the tax year, which was previously the case.

HMRC says the change is designed to reflect the greater “fluidity” of the modern labour market and to ensure that the right amount of tax is being taken at source, so also improving accuracy for employers and employees.

However, although RTI is now being used to file 99% of all PAYE returns, 3,536 employers in East Anglia still have yet to start using the system. If they don’t send HMRC their PAYE information by May 19, they face a penalty of at least £100, with the penalty depending on the number of employees and the length of time involved.

Ruth Owen, HMRC’s director general for personal tax, said: “Over 99% of PAYE records are being successfully reported in real time and the majority of businesses say they find the new system easy to use.

“So those who have not begun using the system should not stick their heads in the sand. They need to act now to ensure that they don’t get a penalty at the year end.”

shares

0 comments

The Willis building in Ipswich.

Around 200 people are to lose their jobs at the Ipswich office of global insurance broker and risk management group Willis.

The Great House restaurant with rooms in Lavenham.

An award-winning Suffolk restaurant has gained another accolade after being ranked the 26th best in the country.

Gavin Patterson, chief executive of BT.

Photo: BT

BT is to pay out up to £129million to extend the Government-led roll-out of superfast broadband, after a bigger-than-expected take-up of the service.

Centrica has reignited controversy over high energy bills by announcing a 44% increase in first half profits at its British Gas retail division.

Energy giants Royal Dutch Shell and Centrica today revealed plans to axe a total of more than 12,000 jobs.

Christopher Hayman of Hayman Distillers with his children Miranda and James.

Essex gin maker Hayman Distillers is celebrating after winning a Gold award at this year’s International Wine and Spirits Competition (IWSC).

Bakery chain Greggs saw like-for-like sales rise 5.9% in the six months to July 4.

Higher breakfast sales and a bigger range of healthier products helped Greggs grow underlying profits by 51% in the first half of the year.

Barclays chairman 

John McFarlane.
Photo: VisMedia

Barclays boss John McFarlane today signalled plans to ramp up growth, squeeze costs and streamline the business after announcing a 25% rise in first half profits.

Uncertainty over Government policy is holding back potential investment in the offshore wind sector, according to East of England Energy Zone director James Gray.

The absence of a clear Government stategy is leaving the offshore wind industry “in limbo”, according to a leading figure within the sector in East Anglia.

The rate of growth in the UK economy rebounded during the second quarter of 2015, but the manufacturing sector continued to struggle, according to official figures.

UK growth bounced back in the second quarter of 2015 as gross domestic product (GDP) increased by 0.7%, according to official figures.

Ransomes Jacobsen operations director Simon Rainger addresses staff as the company's last Ransomes Commander mover leaves the production line.

Staff at Ipswich-based turf maintenance machinery maker Ransomes Jacobsen have marked the end of an era, with the last Ransomes Commander mower having rolled off the production line.

Most read

Most commented

Topic pages