RTI late filing easement

RTI Late Filing Easement Extended

Real-Time Information (RTI) reporting is a crucial requirement for employers, ensuring that HMRC receives timely payroll data. Previously, HMRC announced that the three-day late filing easement would be abolished. However, they have now confirmed that it will remain in place until 5 April 2017.

This easement means that no automatic penalties will apply if an employer files a Full Payment Submission (FPS) up to three days late. While this provides some flexibility, employers must not assume late filing is acceptable. Repeated delays could still lead to HMRC scrutiny.

Employers should also note that while penalties may not apply, late filings can still trigger compliance reviews. HMRC tracks filing behaviour and may issue warning letters to businesses that frequently rely on the easement. Persistent offenders risk additional scrutiny, which could lead to penalties in future tax years.

Avoiding RTI Late Filing Penalties

Although the RTI late filing easement remains, employers should aim to submit FPS on time to avoid potential issues. HMRC has warned that persistent late filers may face penalties or compliance checks.

To stay compliant, employers should:

  • Submit FPS on or before the payment date whenever possible.
  • Avoid relying on the three-day easement unless absolutely necessary.
  • Ensure payroll processes are efficient to prevent repeated delays.
  • Check HMRC notifications for any warnings about late filings.
  • Review payroll software settings to confirm automatic submissions are processed correctly.

While HMRC acknowledges occasional delays, chronic late submission could trigger further investigation. Businesses should treat the three-day rule as an exception, not a routine practice.

How We Can Help

At Lewis Brownlee, we support businesses in meeting payroll compliance requirements, including RTI late filing easement rules. Our experts help employers avoid penalties and improve payroll efficiency.

We offer a free introductory meeting to discuss your RTI obligations and ensure payroll compliance. Whether you need assistance with payroll software, HMRC reporting, or compliance checks, we are here to help.

Help is at hand! Contact us today for expert payroll guidance.

Final Thoughts

The RTI late filing easement remains until 5 April 2017, but employers should avoid habitual late filings to prevent HMRC intervention and potential penalties. Ensuring timely FPS submissions will keep payroll operations smooth and reduce compliance risks.