National Payroll Week - Penalty system

30 Aug 2019

Employers are required to submit correct payroll information to HMRC on time or face a penalty fee. An employer could be liable for a fee if:

• The Full Payment Submission (FPS) was late (not within 3 days of the employees’ payday)
• The expected number of FPSs was not received
• An Employer Payment Summary (EPS) was not sent for any employee not paid in a tax month.

There is some leniency for one off errors, however employers who regularly file late of incorrect information will be considered for a penalty. This means that HMRC could retrospectively look at your payroll filing. You aren’t necessarily off the hook if you don’t receive a penalty straight away.

The penalty fee is dependant on the number of employees you have - a larger employer will be charged a larger penalty. You will also be charged per PAYE scheme if you run more than one.

We cannot emphasise strongly enough how important it is to meet HMRC deadlines and ensure that the correct information is submitted. Minor inaccuracies with details such as date of birth, National Insurance number or Tax Code can also put you at risk of a penalty from HMRC.

If you'd like to discuss your payroll needs with our team, give them a call on 02380 234222 or email accountants@hjssolutions.co.uk

#NPW19 #KeepUKPaid #BePayroll