There are penalties for not complying with RTI, These can get steep if your not careful.
When you run a payroll with RTI there are 2 types of submission you must send to HMRC. The submission MUST be done before you pay your staff.
Full Payment Submission (FPS). this contains all the relevant wage information for the period, including all names, national insurance numbers, Gross wages, PAYE tax etc..
Employers Payment Submission (EPS). This submission is used if none of your employees are paying any tax, it includes all information on the FPS excluding the PAYE tax.
If you fail to submit either of the submissions above before you pay your staff, you could be hit with a penalty. The amount of the penalty is below.
|Number of Employees||Penalty|
|1 - 9||£100|
|50 - 249||£300|
|250 and over||£400|
If you’re over 3 months late you can be charged an additional penalty of 5% of the tax and National Insurance that you should have reported.
There are a few exceptions.
If your FPS is late but all reported payments on the FPS are within 3 days of your employees’ payday (this applies from 6 March 2015 to 5 April 2016)
If you’re a new employer and you sent your first FPS within 30 days of paying an employee
If it’s your first failure in the tax year to send a report on time (this doesn’t apply to employers who register with HMRC as an annual scheme or have fewer than 50 employees for the tax year 2014 to 2015)