Small businesses will be exempt from real-time information (RTI) late filing penalties until March 2015, HMRC has announced.
HMRC will phase in quarterly penalties for late RTI returns by business size, starting with those who employ 50 or more staff on 6 October 2014.
Businesses with 49 or fewer employees will have until 6 March 2015 before penalties are issued.
HMRC said it will notify all employers about when penalties for late filing will be introduced.
Colin Ben-Nathan of the Chartered Institute of Taxation said:
“Smaller employers, in particular, need a longer period of time to adjust to PAYE and other administrative changes because they have very limited resources which are primary [sic] geared to servicing their clients and customers.”
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