A consultation on late payment of Pay As You Earn (PAYE) and late filing penalties is to take place ahead of the main roll-out of Real-Time Information (RTI).
As part of the Budget 2012, it has been announced that the Government intends to investigate a new model for facilitating penalties.
Matthew Hunnybun, Tax Partner at KPMG, said: “This indicates a much more proactive approach to compliance by HM Revenue & Customs [HMRC].”
He advises that employers need to collate all required RTI from their systems to ensure conformity with the new regulations.
The Budget also outlined that, following consultation, HMRC will be given more powers to make minor changes to the regulatory penalties regime. In future it should be given the ability to update the value of fines in line with inflation and repeal obsolete provisions.
