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PAYE Real Time Information pilot: update

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New PAYE schemes set up after November 2012, and existing employers who become clients of pilot software providers, bureaux or agents, will be able to join the RTI pilot from November 2012, HMRC announced.

The consultation paper published on 14 June, Securing compliance with RTI, sets out proposals for late filing and late payment penalties. ‘Of course all of this is laying penalties on a system that we still think many employers will struggle to cope with – especially in respect of share schemes, expats and employees paid at the end of irregular shifts,’ the CIOT technical team has observed.

‘We want the RTI returns not penalties,’ Stephen Banyard, HMRC’s Acting Director General for Personal Tax, said at the launch of the consultation. ‘But penalties are necessary to deter the minority who don’t want to play by the rules. And to reassure those who do file and pay on time that non-compliance is being tackled.’

The ICAEW Tax Faculty noted that the consultation did not cover the penalties for filing incorrect returns, which ‘are subject to a separate process of compliance checks and take account of the underlying behaviour of the employer’.

Guidance on RTI is available on the HMRC website.