We have some clients who pay their directors monthly but we process the payroll quarterly in advance and have been in the habit of submitting three RTI reports covering those months at the same time. This complies with HMRC's guidance about on or before filings and these have always been accepted and penalties have never been charged. However, we have just read the report of the FTT case Quayviews Ltd v Revenue and Customs Commissioners  UKFTT 190 (TC) and were surprised to find that in fact the legislation (S6C(1) Sch 55 FA 2009) requires RTI returns to be made "during" the tax month for which the payment relates. The taxpayer's penalty appeal in that case was successful but only because of a reasonable excuse (due to HMRC guidance not spelling out that there is a start rule as well as an on or before rule). So, now we are aware, it seems that we shall have to submit RTIs every month from now on to protect our clients from potential penalties. Just thought I would mention it in case anyone else did not know this.
1st Jul 2022
RTI - Monthly returns sent quarterly in advance
We have some clients who pay their staff monthly but we process the payroll quarterly in advance
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