Non-Compliance is NOT an Option

HMRC confidently states that: “RTI will make it easier for employers, pension providers and HMRC to administer RTI will remove administrative burdens of £300 million a year from employers, mainly from the abolition of the end-of- year PAYE returns process – the biggest single contribution that any tax change could make.” (Source:

However, the impact on employers not aware of the implications could be severe. RTI is mandatory. There has been no confirmed value of fines although HMRC have proposed £100 each time you fail to update details in real time (source:, but they will not be implemented in 2013. In addition to the suggestion of a £100 fine, HMRC introduced the idea of fines only being issued on a quarterly basis, or once a set limit has been reached. Proposals also include the creation of banding, which would see employers being charged for specific numbers of defaults; for instance between one and 99 faults being fined a set amount and errors between 100 and 199 being fined another amount.

Not only will HMRC impose penalties for failure to comply, but if you get it wrong then employees could be taxed the wrong amount and be under or over paid throughout the year. Even those businesses aware of RTI, and how close it is to being implemented, may not appreciate the full implications and the extent to which RTI will affect their processes and procedures. So far, HMRC has identified over 100 potential pieces of information to be transmitted under RTI.