3 Ways to Avoid RTI Payroll Fees and Fines


The RTI (Real Time Information) system recently came into force and governs how you need to report PAYE to HMRC as part of your obligations as an employer. Using RTI is designed to be simple, but there are certain tasks you need to do every time you make a payment to an employee, and many businesses discover to their cost that they have failed to complete these processes accurately, or on time. Unfortunately for a business, HMRC does not take into account any excuses such as ignorance of the process, or a busy time in the office. You need to make sure you complete RTI submissions on time, and accurately, every time. Here are a few simple things that your business needs to do to avoid getting hit with a penalty notice from HMRC.

  1. Be Accurate

Mistakes happen, yes, and they even happen to the people at HMRC. But you will be penalised for making mistakes unless you can show that they happened even while you took reasonable care, or that you reported the mistake without HMRC having to prompt or correct you. In these cases you may avoid a penalty, but it is not guaranteed. The best way to avoid fines for mistakes is to be as accurate as possible with your calculations and learn the correct procedures for making calculations and following processes. It helps to invest in an outsourced solution for payroll from one of the payroll services uk companies can use – you are still ultimately responsible for making sure your payroll submissions are accurate, but when you use a specialist company you can stop worrying every month whether what you are doing is correct.

  1. Be On Time

The rule linked to RTI – which, of course, means reporting in real time – is that you must make the payment on the day you pay or before you make the payment. So if you pay on a Monday, you need to make the Full Payment Submission on the Monday. Again, here is where a payroll supplier can help because they are fully versed in when payments and submissions need to be made so you don’t worry about missing deadlines.

  1. Be Prompt With Payment

You cannot get away with switching your payments around through the months to ease your cashflow as HMRC now expect to be paid exactly what you owe, when you owe it. Whether you manage payroll yourself or you outsource it to someone else, you are responsible for having the funds available to make the payments when needed. Keep an eye on your cashflow to avoid potential problems.


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