RTI penalties

Copyright © 2026 LexisNexis
Produced by Tolley in association with Vince Ashall
Employment Tax
Guidance

RTI penalties

Copyright © 2026 LexisNexis
Produced by Tolley in association with Vince Ashall
Employment Tax
Guidance
imgtext

HMRC had the power to impose penalties under the old reporting regime (P14, P35, etc) and this has continued under Real Time Information (RTI). Possibly owing to a recognition that RTI took a while to get up to speed in all areas (see Employer Bulletin June 2015, item 2), HMRC, at least at first, relaxed its stance somewhat, certainly with regards to the automatic imposition of RTI-related penalties.

Nevertheless, despite HMRC stating that it does not want to charge penalties and that it will issue electronic alerts to help employers meet their filing and payment obligations, penalties will be issued on a risk-assessed basis. This means that rather than issuing RTI penalties on an automated basis, the potential for penalties will be assessed individually, based on the employer’s overall compliance record. The risk-based approach was confirmed as still current in the HMRC Employer Bulletin: June 2022.

Penalties may be issued for late filing, late payment and / or filing incorrect returns.

Late filing

The guiding principle for employers under RTI is that the Full Payment Submission (FPS)

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
TAKE A FREE TRIAL NOW
Vince Ashall
Vince Ashall linkedinicon

Payroll Consultant & Trainer at VA Payroll Services

Involved in payroll for more years than I care to remember! Initially in the NHS, where i oversaw the development of the NHS's bespoke payroll system (SPS Standard Payroll System), and latterly in the private sector.   Served for 13 years as a MNT for a private sector defined benefit pension scheme. Have had articles published in payroll publications and and provide updates for various publishers.   Fellow of the CIPP and gained a MSc in Payroll & Business Management in 2002. Now a self employed payroll and pensions consultant

Read moreRead more
Powered by Tolley+™
  • 22 Aug 2025 06:41

Home/ Tolley Tax Guidance/ Employment Tax / Enquiries, penalties and appeals

Popular Articles

Value Added Tax

Exporting goods ― proof of export

Exporting goods ― proof of exportIn addition to the requirements laid down in the Exporting goods ― overview guidance note, businesses intending to zero-rate exported goods must hold satisfactory evidence that the goods have been delivered to a destination outside of the UK. If satisfactory evidence

15 Dec 2020 14:02 | Produced by Tolley Read more Read more
Corporation Tax

Non-trading deficits on loan relationships

Non-trading deficits on loan relationshipsOverview of non-trading deficits (NTDs)When a company’s debits on its non-trading loan relationships and derivative contracts in an accounting period exceed the credits on its non-trading loan relationships and derivative contracts in the same period (the

14 Jul 2020 12:17 | Produced by Tolley Read more Read more
Employment Tax

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more Read more