From 06 March 2015, in-year filing penalties will be issued to employers who report their payroll information late.
Penalties will be issued if:
- Your Fully Payment Submission (FPS) is late
- You didn’t send the expected number of FPSs
- You didn’t send an Employer Payment Summary (EPS) when no employees were paid in a tax month
Penalties will not be charged if you are a new employer and the first FPS has been sent within 30 days of paying an employee.
The amount of penalty charged depends on the number of employees that you have. Charges are as follows:
Number of Employees |
Monthly Penalty |
1 – 9 |
£100 |
10 – 49 |
£200 |
50 – 249 |
£300 |
250 + |
£400 |
In addition to the above, if a submission is over 3 months late HM Revenue & Customs can charge an additional penalty of 5% of the Tax and National Insurance that should have been reported.
HM Revenue & Customs send penalty notices quarterly. The notice informs you of the amount due, how to pay and how to appeal should you not agree with the decision. Penalties payments are due within 30 days of the date on the notice – after which date interest will accrue.