RTI Late Filing Penalties are here!

Picture1We are almost 18 months into the RTI filing regime for payroll schemes and it now seems certain that HMRC are going to press ahead with the introduction of their late filing penalty regime from 6th October 2014.

A late filing penalty will be triggered when a Full Payment Submission (FPS) has not been filed on or before the date you paid your employees according to the date included in your FPS submission and when no legitimate late reporting reason has been given with the eventual submission.

Penalty notices will be issued by letter quarterly at the end of July, October, January and April.  One penalty will be charged for each tax month that is filed late and the penalty per tax month varies depending on the size of the payroll; £100 per tax month where there are 1-9 employees; £200 per tax month where there are 10 to 49 employees.  A penalty will not be charged for the first late filing in any tax year, therefore a maximum of 11 penalties may be charged in a year.

Employers will have 30 days from the date of the penalty notice to pay and if they decide to appeal the notice, there will be a new online service to do so.

Since April 2014 HMRC have been able to charge interest on any late payments of PAYE, even if just paid over a day or two after the 22nd of the month.  Perhaps a good time to set up some payroll reminders in your diary!