HMRC Penalties Introduced For Late Reporting

HM Revenue and Customs (HMRC) is introducing penalties for employers who report their information late from:
6th October 2014 for employers with 50 or more employees
6th March 2015 for employers with fewer than 50 employees

When Penalties are charged

You can get a penalty if:

• Your full payment submission (FPS) was late
• You didn’t send the expected number of FPSs
• You didn’t send an 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 send your first FPS within 30 days of payment 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 in the tax year 2014 to 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.

AD+ can provide a fully managed or part managed payroll service which will protect and guarantee that legislation is complied with.  If you would like to discuss payroll services, please contact Karen Laverty on 0141 643 9200.