Businesses who file late tax returns will face an escalating penalty based on their size and the number of months the return isn't filed.
This is one of several changes in effect under the Revenue's new penalties system. It will apply to tax returns up to, and including, 2013/14.
The penalty will be £100 per 50 employees for each month or part of the month the return is outstanding from 20 May 2014 to 19 September 2014.
Also, as part of HMRC's transition to in-year RTI penalties for late and non-filing, it's changing its approach to penalties for late PAYE returns.
When a late return is received, HMRC will issue a revised updated penalty notice showing the correct amount of penalty due.
The ICAEW's Tax Faculty said the new syst...
About Nick Huber
I’m a specialist business journalist and have a particular interest in tax and technology.