RTI catching out some North West employers

Real Time Information (RTI) is catching out many employers in the UK, who this month are being hit with penalties by HMRC, and a leading payroll expert is urging businesses to get their act together, or be liable to substantial fines.

Lisa Kennery, payroll manager of Blackburn based business advisory and accountancy group, Pierce, and a regular blogger on payroll and pensions matters, suggests anecdotal evidence indicates that many employers are unaware of, or simply not taking seriously, their new responsibilities for weekly or monthly reporting of PAYE, despite the first batch of stiff penalties for non-compliance being issued to UK companies by HMRC this month.

She is calling for all businesses in the region with fewer than 50 employees not to be caught out, either by ignorance or defiance of the new regulations and claims that HMRC means business when punishing offenders.

“It has been law since April 2013 for employers to adopt RTI for reporting of PAYE and those with more than 50 employees, who have failed to comply, are this month being hit with the first round of penalty notices, which build month by month and accrue interest if infringement of regulations continues.

"Real Time Information requires employers paying wages monthly or weekly to submit a return to HMRC on, or the day before they pay employees. This is different to the old system that required employers to submit returns annually and, as a consequence, it’s caught out many employers. And, from 6th March this year, employers with fewer than 50 employees will also run the risk of penalties for late or inaccurate returns.

“Employers outsourcing payroll should be fine but those managing payroll in-house are perhaps at most risk if they haven’t sought advice and invested in the specialist software required to enable businesses to make the returns on-line to HMRC. It’s a sea change in how PAYE is reported to HMRC but it appears that the message hasn’t got through to everyone.”

HMRC penalties for late filing of Full Payment Submissions are based on the number of employees at a business and begin at £100 monthly, rising to £400, plus, if over three months late, an additional 5% of the value of the PAYE an employer should have reported.

Kennery believes that smaller businesses could not sustain regular penalty payments for long before cash flow would be affected adversely. She adds: “It’s my opinion that few small or medium size businesses can afford monthly fines, with interest, even if the UK economy is on the way back to good health, because it would be detrimental to working capital. It therefore doesn’t make sense for employers to be lax about RTI, whether they believe it is increasing their administration burden or not.

Despite the gloom, some better news coming from HMRC is that the “seven questions” checklist, designed to replace the old P35, will be removed from 6 March 2015. From this date, HMRC will accept a final Full Payment Submission or Employer Payment Summary for 2014-15 and 2015-16, with or without a completed checklist, although employers should still report the Final Submission for Year indicator. HMRC guidance also recognises that some software developers may not be able to make the necessary amendments to their end of year products in time for the final 2014-15 submissions. HMRC guidance states: “In cases where employers do have to complete the checklist in order to make their final submission, they should ensure that they complete it accurately. We will remove these checklist items from our Basic PAYE Tools as soon as possible but this will probably not be until July 2015.”

Enjoyed this? Read more from Pierce CA Ltd

Latest news

1

New India branch campus on the horizon for Lancaster University Keir Starmer meets Indian PM and included Prof Simon Guy Lancaster University. Pic Simon Dawson

New India branch campus on the horizon for Lancaster University

09 Oct 2025

2

Best events and talented students complete finalists list for Lancashire Tourism Awards 2026 Best Events and Talented students on Lancashire Tourism Awards finalist list

Best events and talented students complete finalists list for Lancashire Tourism Awards 2026

09 Oct 2025

3

East Lancashire Learning Group named UK digital transformation leader in CIO 100 Awards Andrew Dewhurst with the award win

East Lancashire Learning Group named UK digital transformation leader in CIO 100 Awards

09 Oct 2025

4

PHX Training appoints new business leader in Blackpool Jason Davenport PHX Training

PHX Training appoints new business leader in Blackpool

09 Oct 2025

5

Velocity seals Airbus extension worth up to $54m Velocity Composites Has Announced Its Entry Into The Us Market

Velocity seals Airbus extension worth up to $54m

08 Oct 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

Advantage: AI – A Workshop for Business Leaders – Oct 10th
Ai 10.10.png.png
LBV Hub Seminars
10 Oct 2025 - 10 Oct 2025

Advantage: AI – A Workshop for Business Leaders – Oct 10th

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 12:00

Unlocking major project opportunities in the North West
Lancs-cham-logo.jpg.jpg
LBV Hub Seminars
15 Oct 2025 - 15 Oct 2025

Unlocking major project opportunities in the North West

Strathmore Hotel, Morecambe, LA4 5AP

08:00 - 10:00

The New Employee Rights Landscape: Day One Compliance Essentials
EventBrite NORi - 15th Oct 2025 Webinar.png.png
LBV Hub Webinar
15 Oct 2025 - 15 Oct 2025

The New Employee Rights Landscape: Day One Compliance Essentials

Microsoft Teams, Microsoft Teams, PR253XH

13:30 - 15:00

The Autumn Re set - pour me a wine
LBV Advert_Autumn Reset 1200 x 630px.png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Autumn Re set - pour me a wine

The Artistry House , Preston , PR1 3JJ

17:30 - 19:30

The Business Network Central & East Lancashire
LBV Header (26).png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

October Freelancer Meet-Up
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

October Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

HR Essentials for pubs, bars and licensed venues
EventBrite NORi - 22nd Oct Webinar.png.png
LBV Hub Webinar
22 Oct 2025 - 22 Oct 2025

HR Essentials for pubs, bars and licensed venues

Online - Teams, Leyland, PR253XH

13:30 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin