PAYE RTI penalties – continuation of the risk-based approach to charging penalties

20 August 2020

Following a recent review, HMRC has decided that it will continue the risk-based approach to PAYE late filing and late payment penalties for the tax year 2020-21.

The impact of this is that late filing and late payment penalties will be considered on a risk-assessed basis rather than being issued automatically if files are not submitted on time. From September 2020, penalties for 2020-21 will start to be issued.

Employers are reminded that support is available during the Coronavirus (COVID-19) pandemic which includes more time to appeal. HMRC now recognise COVID-19 as a reasonable excuse that prevents employers from meeting their tax obligation.

For more information about this, go to https://www.gov.uk/tax-appeals/reasonable-excuses


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