Aug 2015


What penalties are applied by HMRC if RTI returns are not submitted on time?

Hmrc have recently provided employers with information about late/non filing PAYE penalties, inaccurate reports and how to avoid penalties in the future.

Penalties are applied when one or more of the following occur:

- The full payment submission (FPS) was late
- The expected number of FPSs are not sent for any given period
- An EPS (Employer Payment Summary) is not sent when you did not pay any employees in any given pay period

HMRC will not charge a penalty if:

- The FPS is late but all reported payments on the FPS are within 3 days of the employee’s payday
- A new employer sends their first FPS within 30 days of paying an employee
- It is the first failure in the tax year to send a report on time (this does not apply to employers who register with HMRC as an annual scheme or have fewer than 50 employees for the tax year 2014 to 2015)


Number of employees - Monthly penalty

1 to 9 - £100
10 to 49 - £200
50 to 249 - £300
250 or more - £400

If an employer is over 3 months late they wil charged and additional penalty of 5% of the tax and NI Insurance that they should have reported.

Also be aware that if there is more than one PAYE scheme penalties can be charged on each!

Read HMRC users & Auto Enrolment: Manual vs. Automation

Posted byDenise CowleyinHMRCPayroll SoftwareRTI