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.