Smaller Businesses Now Eligible For Late PAYE Filing Penalties Under The RTI (Real Time Information) System.

Do you run a micro-business or smaller business – that is a business with fewer than 50 employees?

Then Steven Glicher accountants would like to inform you that you now potentially face the prospect of paying fines for late filing of PAYE submissions under the Real Time Information (RTI) system.

All business with more than 50 employees have been subject to penalties for late filing since last autumn.

The original intention was that micro-businesses would also be treated in the same manner; however HMRC granted an extension to smaller businesses to give them time to adapt to the new system. A new deadline date of 6 March, 2015, therefore became the cut-of point. That extension has now obviously ended.

So smaller businesses and start-ups are now eligible for penalties. There is still some flexibility built into the system however, as HMRC has announced there will be a 3 day grace period for all employees before late filing penalties are imposed. The Chartered Institute of Taxation (CIOT) and the Low Incomes Tax Reform Group (LITRG) have both welcomed the three-day concession which mitigates a burden that would have hit the smallest firms hardest.

Patrick Stevens, tax policy director, CIOT, said:


“Although there is no change to the actual filing deadline, which for the vast majority of employers still means a Full Payment Submission (FPS) should be filed on or before each time they pay their staff, this three day grace period is certainly a helpful concession.”

“This comes in addition to the rules which stipulate that brand new employers can send their first submission within 30 days of first paying an employee without incurring any penalties.”

“In all cases, the first late submission of the year is ignored. It is also the case that micro employers, (those with up to nine employees) who commenced payrolls before April 6 2014, are essentially allowed to file monthly anyway until April 2016.”

“Further relaxations recently announced include HMRC continuing to review late payment penalties manually, instead of imposing them automatically (as intended from 6 April 2015) and employers no longer needing to complete a set of year-end questions on the final FPS of the year, which in an effort to simplify the process, are disbanded from 6 March 2015.”

If your business is experiencing problems with RTI, then Steven Glicher accountants are here to help you.

We can file all of your year-end and in-year returns on your behalf with HMRC and provide you with P60s to distribute to your employees. We can help you manage the migration to RTI and all the reporting changes that it involves, leaving you to concentrate on managing and growing your business.

If you would like clarification on this matter or would like to discuss any other issues relating to small business tax advice, then contact Steven Glicher accountants on 0161 485 8007 or email

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