HMRC set to revise PAYE penalty scheme for RTI returns
HMRC is going to change the way the PAYE penalty scheme operates in line with the recent announcement that the tax authority is taking a slightly more lenient line on £100 penalties for late tax returns
The change in approach is designed to free up more time and resources for HMRC to investigate major tax avoidance and evasion rather than penalising ordinary people who may have missed a deadline inadvertently and not to avoid paying tax.
At the same time, HMRC says that it wants to introduce a more progressive approach to fines, with a scale of penalties so that serious and persistent non-compliant taxpayers are penalised more heavily, rather than taking a blanket approach to all taxpayers.
HMRC has confirmed that changes to penalties incurred for sending real time PAYE information late will be announced next week say Harris & Co chartered accountants Northampton
It currently imposes a large number of low-value penalties in income tax self assessment and this is likely to extend to the Real Time Information (RTI) PAYE regime.