Although Full Payment Submissions (FPS) and Employer Payment Summary (EPS) are essential to be delivered to HMRC accurately and on time through Real Time Information (RTI). Failure to deliver will almost definitely lead to penalties.
Below listed is information for employers about how they can potentially become affected if they report non-filed or late PAYE, inaccurate reports, the penalties, or charges and how to prevent these consequences for future reference.
How you can Receive a Penalty
Penalties are only charged against the employer if:
- the Full Payment Submission was not submitted to HMRC on or before the due date.
- the required number of Full Payment Submissions were not sent to HMRC
- the Employer Payment Summary was not submitted on or before the 19th of the following month.
- you did not send and Employer Payment Summary when no employees had been paid within a tax month.
How much you pay
HMRC make an estimate on what they believe you should pay if you do not submit an FPS or EPS on or before due date, or not telling HMRC that you have not paid any employees. The estimated penalty is calculated based on your previous PAYE payment and filing history.
If you happen to receive a penalty from HMRC, the payment required to be paid all depends on the number of employees you have.
See below for payments:
|Number of Employees||Monthly Penalty Applied|
|1 to 9||£100|
|10 to 49||£200|
|50 to 249||£300|
|250 or more||£400|
If you Receive a Penalty
HMRC will send a penalty notice quarterly which includes the details of:
- what you owe
- how to pay
- what you can do if you disagree with the decision of HMRC charging you
If you can make a payment and pay the penalty within 30 days of the date of issue you will not be charged interest.
You can appeal against a penalty if you believe it is not due, the amount is incorrect or if you are able to provide a valid reason for the submission of reports being past the due date.
Penalties issued by HMRC are automatic which means that your unique situation is not considered other than your duties have not been met. If you believe that HMRC are mistaken in issuing a penalty, the only valid justifications for an appeal that will be accepted, quoted by HMRC may be:
- no longer have any employees
- data on the returns were incorrect
- death or bereavement
- ill health
- filed on time
- IT difficulty
- theft or crime
- no payments to employees
- fire, flood or natural disaster
- missed correction or easement
Get in touch
Contact us if you have any questions or want to discuss the next steps for your business.