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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 employees Monthly 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.

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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

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