Payroll – RTI Penalties

Payroll – RTI Penalties

HMRC has introduced penalties for employers who report their payroll information late from:

6th October 2014 for employers with 50 or more employees
6th March 2015 for employers with fewer than 50 employees

What Penalties are charged

You can get a penalty if:

Your Full Payment Submission (FPS) was late
You didn’t send the expected number of FPS’s
You didn’t send the Employer Payment Summary (EPS) when you didn’t pay any employees in a tax month

HMRC won’t charge a penalty if:

You’re a new employer and you sent your first FPS within 30 days of paying an employee
It’s your first failure in the tax year to send a report on time (this doesn’t apply to employers with fewer than 50 employees for the tax year 2014-2015)

How much you pay

How much you pay depends on how many employees you have.

Number of employeesMonthly penalty
1 to 9£100
10 to 49£200
50 to 249£300
250 or more£400


If you’re over 3 months late you can be charged an additional penalty of 5% of the tax and NI that you should have reported.

If you run more than 1 PAYE scheme, you can be charged penalties for each.

If you would like to speak to our payroll department for further information, please contact Karen Laverty.

Share this post

Comment (1)

  • Michael J Perry FCA and Emma J Perry ACA Reply

    Excellent summary to make clients aware of these potentially draconian penalties. Get a professional firm to deal with your payroll!

    February 25, 2015 at 000472015-02-25T16:06:47+00:0053425Wed, 25 Feb 2015 16:06:47 +0000PM%Wed, 25 Feb 2015 16:06:47 +0000309x

Leave a comment

Your email address will not be published.