Tax return deadline also applies to IR35
HMRC have recently reminded contractors that the deadline for final IR35 payments/returns for the tax year ended 5 April 2014 is fast approaching.
Contractors who have operated the IR35 concession to delay making a final return and payment for the tax year ending 5 April 2014 have until 31 January 2015 to submit accurate figures and pay any outstanding amounts. This concession operates where a provisional return and payment have been submitted but cannot be confirmed because final figures were not known by 5th April 2014. Adjustments should be reported on an Earlier Year Update (EYU) submitted electronically to HMRC between 20 April 2014 and 31 January 2015.
It should be noted that HMRC will charge interest on unpaid PAYE tax and NIC up to the date of full payment.
RTI Penalties
Freelancers who report their PAYE information late may incur automated in-year penalties from 6 March next year.
Businesses who employ 50 or more people who file late may incur these penalties from 6th October 2014. Smaller businesses have not been exposed to the penalties to date because HMRC understand that they have the most difficulty in adjusting to real time reporting and therefore have been given further time to comply with the new arrangements before facing a penalty.
Employers who believe they have a reasonable excuse for filing late can appeal using the new online appeals system once they have received a penalty notice, which should speed up the appeal process for businesses and HMRC alike.
In the run-up to March 2015, HMRC will examine other ways to encourage employers to comply with the rules, in addition to financial penalties.
The Revenue have sent electronic Generic Notification Service (GNS) messages to all employers to confirm when the new in-year penalties apply to them, based on the number of employees shown in their records.
For guidance on what to do if you receive a GNS message visit the What to do if you get an online penalty warning message page.
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