HM Revenue & Customs (HMRC) will charge penalties if:

  1. your Full Payment Submission (FPS) was late
  2. you did not send the expected number of FPSs
  3. you did not send an Employer Payment Summary (EPS) when you did not pay any employees in a tax month

HMRC will not charge a penalty if:

  1. your FPS is late but all reported payments on the FPS are within 3 days of your employees’ payday (this only applies until 5 April 2019), however employers who persistently file after the payment date within 3 days may be contacted or considered for a penalty.
  2. you are a new employer and you sent your first FPS within 30 days of paying an employee.
  3. It’s your first failure in the tax year to send a report on time (this does not apply to employers who register with HMRC as an annual scheme).

How much you pay depends on how many employees you have, and if you are over 3 months late you can be charged an additional penalty of 5% of the tax and National Insurance that you should have reported. Also, if you run more than one PAYE scheme, you can be charged penalties for each.

If you would like to discuss, or require assistance please contact Lee Reynolds, Senior Payroll Manager on 01788 539000.