05 Sep Penalties for PAYE RTI
Penalties – PAYE RTI – HMRC Update
Following a review, HMRC has decided to continue the risk-based approach to PAYE late filing and late payment penalties throughout the 2019/20 tax year.
This means that late filing and late payment penalties will be considered on a risk assessed basis rather than being issued automatically. Penalties for 2019/20 will be issued from September 2019.
Late Filing Penalties PAYE
HMRC will not charge penalties automatically for 2019/20 provided a Full Payment Submission (FPS) is filed within 3 days of the payment date.
This is not an extension to the current statutory position on reporting PAYE payments which remains unchanged. You must still file your submissions on or before each payment date.
Where there is a pattern of persistent late-filing within three days of the statutory filing date, employers will be reviewed and may be charged a filing penalty as part of our risk-based approach.
Late Payment Penalties
HMRC will continue to issue late payment penalties using a risk-based approach for 2019/20. The approach is based on areas of greatest risk and non-compliant behaviour. Guidance on how HMRC calculates late payment penalties and how you can appeal them can be found on GOV.UK
The date for making PAYE payments, 22nd of the month or quarter if you are eligible to pay quarterly following the tax month or period to which they relate, to HMRC electronically is unchanged. You can make a late payment penalty here.
If you pay by cheque or other non-electronic methods you must pay by the 19th of the following month or quarter to which the payment relates.
The easiest way to ensure you file on time and avoid penalties is to get EA Assist to manage your payroll for you. We will ensure your submissions for weekly, monthly or annual salaries are completed accurately and on time.
Reporting payroll information accurately and on time
Accurate and timely reporting of payroll is really important. It helps to make sure that your employee pays the right amount of tax and is linked to Universal Credit.
Where reports are late, or inaccurate information is provided, your employees may be negatively affected, and not paid the correct amount of Universal Credit.
The payment date you report on your Full Payment Submission must be on or before the date you pay your employees, not the payroll run date, or another date from your payroll system.
Incorrect recording of this date is one of the most common reasons for the issue of a late filing penalty. If you are unable to report payments on time, and you have a reasonable excuse, you should use a late reporting reason code.
EA Assist will ensure timely and accurate filing, you just need to provide us with your staff salary details and we will run your payroll and file with HMRC. We will also send you a payroll report each pay submission.
HMRC Messages
HMRC may send you a message regarding your payroll – these are called Generic Notification Service (GNS) electronic warning messages
Do not ignore them as they contain important information and are designed to be helpful prompts.
HMRC will send you a message if:
- each month where a Full Payment Submission is later than the payment date, with no valid reason
- on the 11th or 12th of the month where we haven’t received an FPS for the month that just ended on the 5th or an Employment Payment Summary (EPS) stating no employees were paid in that month
- around the 5th of each month where the previous month’s payment has not been paid on time or in full and there is an outstanding charge of over £100.
These messages will be avoided if EA Assist manage your payroll. We ensure all filings are accurate and on time, avoiding any warning messages and penalties.
Letting experts manage your payroll is a cost effective solution and ensures staff are paid on time every time. We can advise on Statutory payments such as Sick Pay, Paternity and Maternity and will provide all end of your reports for both you and your staff.
To find out more about the payroll services EA Assist can offer visit our webpage here. Contact us now on 01370 646943 to find out how we can help you with your payroll function leaving you to manage your business.