No More Mr Nice Guy

February 17th 2015

Employers with 49 or fewer employees should note that automatic penalties will apply if their PAYE RTI submissions are not up-to-date by Thursday, 5 March 2015 - and thereafter kept up-to-date. (Larger employers became subject to penalties last October, and the first penalty notices will be issued early in February.) Penalties will be imposed:


  • Where a Full Payment Submission (FPS) is filed late - that is to say, is not filed by the day the employees are paid or, if the employer qualifies for the concession for some employers with nine or fewer employees, by the last pay day in the tax month; and
  • Where an employer fails to file a nil Employer Payment Summary (EPS) - for a month in which no payments to employees were made - by the 19th day of the following month (so by 19 March for the tax month to 5 March).

The first default each tax year will be ignored, but otherwise the penalty will be £100 if the employer has nine or fewer employees or £200 if he has between ten and 49.

Where a submission is three months late, HMRC will additionally be able to impose a 5% surcharge on the tax and National Insurance contributions payable. They say that this will be used ‘only for the most serious and persistent failures.’

From April, the screw will be tightened yet further, for all employers, with the existing penalties for late payment of monthly or quarterly PAYE remittances being made automatic and applied in all cases. The Penalty will be between 1% and 4% of the tax due, depending on how many times, in the tax year, the employer pays late.

Please contact DSC Chartered Accountants in Harrogate if you would like to discuss this article in more depth.