My software provider (Moneysoft) have told me on the phone that they will be very surprised if come next April everyone is not fully clued up about the rule that an RTI Report must be made on or before the date every employee is paid - and that automatic penalties will ensue.
This matter has not been taxing my brain much hitherto as we have been 'playing our way in' with no penalties this Tax Year. Google searches on "RTI Penalties" do not flag this up as a big problem, but here is what I predict;
HMRC says it will save penalties up for three months then send them out in batches. So about July 2014 a big headline will appear in the Daily Mail along the lines that thousands of small employers have been hit by massive fines.
Let's say that an employer pays on a Wednesday and the accountant does his batch processing on a Friday. After 3 months that is 13 late submissions - a fine of £1300?
Or even, the accountant knows he has to do RTI every day (what a chore that is going to be!) but the teachers go on strike and he has to stay at home. One missed filing, £100 fine, unhappy client, relationship destroyed? - this scenario has already been visited in previous threads on AccountingWeb
You can say I am being alarmist, but can anyone really comfort me? The new regime is so harsh and unforgiving (but, according to my friend at Moneysoft, so obvious) that my scenario seems accurate.
Has anyone who consults with HMRC on behalf of the profession argued for a 7 day filing window?