In direct response to feedback received, HMRC has announced that it has decided to stagger the start of new, automated, in-year late payment and filing penalties under Real Time Information. This delay is being introduced to give both HMRC and employers more time to adapt to reporting in real time.

The penalties are being introduced in stages as follows:

• 6 April 2014; in-year interest on any in-year payment not made by the due date
• 6 October 2014: automatic in-year late filing penalties.

Introducing in-year late filing penalties from 6 October means that employers who bring all their submissions for the period 6 April - 5 October 2014 up to date by 5 October will not face any in year late filing penalties.

This additional time will give those employers who will be reporting on or before payment for the first time or who join RTI in April 2014, more time to adapt. It will also allow employers and HMRC to test and get used to the new Full Payment Submission ‘Late Reporting Reason’ data item.

• 6 April 2015: automatic in-year late payment penalties

HMRC will still issue late payment penalties manually for 2014–15, as in previous years. In-year interest will apply on all amounts unpaid by their due date from 6 April 2014 as planned. As with other taxes, HMRC will calculate interest daily. HMRC won’t seek payment of interest until the debt is settled. However, employers will be able to see the amount of interest accruing on the Business Tax Dashboard and on any letters HMRC send seeking payment of the underlying unpaid amount.