Copyright © 2024 Thesaurus Software Ltd T/A Bright Software Group.
3 Shortlands, Hammersmith, London, W6 8DA
[email protected] 0345 9390019Jul 2014
10
Penalties will apply:
Where a Full Payment Submission (FPS) has not been filed on or before the date you paid your employees, or where you have not revealed why submission is legitimately late by using the late reporting reason field.
Where the expected numbers of submissions have not been received.
These rules apply to each PAYE scheme, rather than each employer.
How do I avoid incurring a late filing penalty?
Using HMRC's Online Service - PAYE for employers
You must submit an FPS each time you make a payment to an employee, on or before the date that you pay them.
If you don’t need to send an FPS because you did not pay any employees in a tax month, it is important that you inform HMRC by sending a nil Employer Payment Summary (EPS) by the 19th of the following tax month. Otherwise, it is likely that it will be assumed that you have missed a submission and will therefore issue a late filing penalty, which you will have to appeal.
To help get your PAYE up-to-date and avoid future penalties, you should take note of any late and non-filing electronic Generic Notification Service (GNS) warning messages which we send to help you get your PAYE affairs up to date – see the Using HMRC's Online Service - PAYE for employers for more information.
Jun 2014
17
Employers who no longer need their PAYE scheme can avoid non-filing Generic Notification Service (GNS) messages and penalties by ensuring that they make their final submission correctly.
The actions for employers to take will depend on what type of final submission they are sending, and for what tax year:
2014 to 2015
• Full Payment Submission (FPS) - when making their final FPS for 2014 to 2015 employers should:
• Employer Payment Summary (EPS) - if they have already sent all their payroll information, employers should just complete the 'Final submission because scheme ceased' and 'date scheme ceased' boxes on the EPS.
This will ensure that HMRC's systems are updated to record the PAYE scheme as ceased.
There's more information, and details of the other actions that employers should take when their business ceases, in the PAYE if your business closes or changes guidance.
2013 to 2014 (PAYE reported in real time)
Employers who have already received an interim penalty warning letter, but who:
should follow the EPS actions in 1b above to stop a penalty.
However, if there is PAYE information still outstanding they should also send an Earlier Year Update (EYU) to make a final submission for the year.
Employers should send their final 2013 to 2014 submission as soon as possible to limit any penalty that is due. For full guidance read:
PAYE final submission for the year and end-of-year tasks
Bright Contracts – Employment Contracts and Handbooks.
BrightPay – Payroll & Auto Enrolment Software.
May 2014
30
HMRC have improved their Business Tax Dashboard following feedback from their customers and have attempted to make it more user friendly.
There have been improvements made to the “Current Position” and the help icons.
Employers will be able to check how the amount they owe is calculated and when the HMRC updates the “Amount Due” on the screen.
It will show the payment date and how the payments are allocated.
Information is also given on the Employment Allowance.
May 2014
26
We recently attended the Business Show 2014 at the Excel in London's docklands.
The show is aimed at start up businesses and those interested in becoming self employed.
BrightPay's lead programmer, Ross Webster, was asked by a passing cameraman to give a spontaneous interview.
Ross performed well as there was literally no time to prepare!
The cameraman then turned his attention to Paul Byrne ...
Apr 2014
23
They will now start from 6 October 2014. To avoid late filing penalties, you must make sure all submissions due are fully up to date by 5 October 2014.
In addition to where submissions do not appear to have been filed by the due date, a late filing penalty for a month may be issued where one of the following applies:
• payment information is not received as expected on an FPS
• you haven't told HMRC that no employees have been paid by sending an EPS
However, no penalty will arise for the first month in each tax year where there is a filing default. This means there are a maximum number of 11 fixed penalties per tax year that can be charged for filing failures.
New employers will not be issued with a penalty if their first FPS is received within 30 days of making their first payment to an employee. But after that, normal penalties rules will apply if an FPS is filed late.
The size of the late filing penalties depends on the number of employees within the PAYE scheme.
| Number of employees | Amount of the monthly filing penalty per PAYE scheme |
| 1 to 9 | £100 |
| 10 to 49 | £200 |
| 50 to 249 | £300 |
| 250 or more | £400 |
HMRC will use the latest information available to determine the number of employees, and the size of the filing penalty for each period where a return is late. <
When the penalty notice will be issued
Ordinarily, HMRC will send employers a filing penalty notice quarterly in July, October, January and April, where appropriate. These penalty notices show the amount of the filing penalty for each tax month identified in that quarter. For example, a penalty notice in July will show any filing penalties arising in the first quarter of the tax year - that is, month 1 (6 Apr to 5 May), month 2 (6 May to 5 June) and month 3 (6 June to 5 July).
The penalty notice will advise you of the amount you're being penalised, tell you how you can pay it and what to do if you don't agree a penalty is due.
Additional penalties for returns over three months late
Where a return is late for three months or more and the information that it would have contained has not been provided on a later return, a further penalty may be charged. This additional penalty is set at 5% of the tax/NICs that should have been shown on the late return. This will be used for the most serious and persistent failures.
Apr 2014
22
The HMRC deadline for 2013/14 FPS submissions has now lapsed (19th April). Therefore, if you attempt to submit an FPS for a 2013/14 pay period HMRC will reject it.
Any 2013/14 payroll submissions, including additional payments, corrections or omissions, must now be submitted to HMRC using the Earlier Year Update (EYU) submission.
HMRC published a new 2013/14 End of Year guide today, http://www.hmrc.gov.uk/payerti/end-of-year/finish-payroll.pdf
A BrightPay 2013/14 end of year checklist is also available, simply click here https://www.brightpay.co.uk/5_Steps_to_EOY.pdf.
Apr 2014
16
HMRC have this week published information to help employers understand how to go about informing HMRC of errors on RTI returns for the tax year 2013/14. This includes a new flowchart (correcting 2013-14 PAYE submissions after 5 April 2014 (PDF 35K) ) which provides employers with a step-by-step guide to follow should any of the following scenarios arise after the 5th April 2014:
The employer wishes to correct amounts already sent on a Full Payment Submission:
· up to and including 19 April 2014 employers can make corrections by sending an Additional FPS for 2013-14. Employers can send more than one FPS to make corrections up to that date if needed. Employers are not required to send another Employer Payment Summary unless corrections are also needed to this.
· after 19 April 2014, employers must make any corrections to a 2013-14 FPS on an Earlier Year Update (EYU). Employers can send an EYU even if they haven't made a final FPS submission. If further changes are needed, employers can correct an EYU by sending HMRC another EYU with the corrected information.
The employer wishes to correct figures already submitted on an Employer Payment Summary (e.g. for the recovery of statutory payments):
· Employers can make corrections to an Employer EPS by sending another EPS to report the correct total year-to-date figures for all recovered payments within that tax year. Employers have up to six years from when they sent in their original EPS to do this.
Full guidance on the above can be found on HMRC’s website at correcting payroll errors - current year
Apr 2014
8
Who can claim
The Employment Allowance is available from 6 April 2014. If you are eligible you can reduce your employer Class 1 NICs by up to £2,000 each tax year.
You can claim the Employment Allowance if you are a business or charity (including Community Amateur Sports Clubs) that pays employer Class 1 NICs on your employees' or directors' earnings.
If your company belongs to a group of companies or your charity is part of a charities structure, only one company or charity can claim the allowance. It is up to you to decide which company or charity will claim the allowance.
You can only claim the £2,000 Employment Allowance against one PAYE scheme - even if your business runs multiple schemes (also see the further guidance on claiming the Employment Allowance).
Not all businesses can claim the Employment Allowance, see excluded employers for more information.
Excluded employers
You cannot claim the Employment Allowance, for example if you:
- employ someone for personal, household or domestic work, such as a nanny, au pair, chauffeur, gardener, care support worker
- already claim the allowance through a connected company or charity
- are a public authority, this includes; local, district, town and parish councils
- carry out functions either wholly or mainly of a public nature (unless you have charitable status), for example:
You do not carry out a function of a public nature, if you are:
providing security and cleaning services for a public building, such as government or local council offices
supplying IT services for a government department or local council.
Personal and Managed Service Companies who pay contract fees instead of a wage or salary, may not be able to claim the Employment Allowance, as you cannot claim the allowance for any deemed payments of employment income.
Service companies can only claim the allowance, if you pay earnings and have an employer Class 1 NICs liability on these earnings.
Apr 2014
7
HMRC has recently issued letters entitled 'Paying PAYE electronically' to employers who are due to make their one off annual 2013 to 14 PAYE payment for month 12, 6 March to 5 April by 19/22 April 2014.
HMRC has published the following message on their ‘What’s New’ pages:
Employers who pay PAYE only once a year and are due to pay month 12 of 2013 to 14
"Most employers now report their PAYE information in real time, known as Real Time Information (RTI). This means each time you pay an employee you must submit details about employees’ pay and deductions to HMRC using payroll software. As part of this change and our ongoing drive to encourage employers to pay using electronic methods of payment, we have stopped automatically issuing letters with a payslip to all employers who pay their PAYE on an annual basis in one single month of the year.
If you have received one of the ‘Paying PAYE electronically’ letters we will not be sending you a payslip to pay your month 12 payment and we are encouraging you to follow the guidance on the letter and pay us electronically.
As the letter advises, paying electronically is more secure, faster, easier and allows you to pay by the 22 April instead of the 19 April if you paid by cheque in the post.
If, exceptionally, you are unable to pay using an electronic method then you will find a pro-forma payslip and guidance on how to use it elsewhere on this website.
Your payment is due on the 19 April if paying by cheque in the post or 22 April when paying electronically. We may charge interest and late payment penalties if you do not make your payment on time."
Mar 2014
25
HMRC has announced more than 12,950 employers in the south east are being urged to send their employees’ Pay As You Earn (PAYE) information in real time or face penalties.
For example a total of 405 employers in Portsmouth are yet to file PAYE returns in real time. Employers who have not used the system were recently sent an email from HMRC, telling them to complete it by the end of March.
As mentioned in previous blogs, RTI should be the standard for the majority of employers now but there are those who are still struggling to achieve compliance.
Last June HMRC released a statement saying they “appreciated that many employers” (over 600,000 at that specific time) “are still getting used to this new way of reporting” and provided a reminder of the PAYE payment position for reporting for compliance with RTI.
With Auto Enrolment now being phased in, the pressure on employers to comply with the law and HMRC’s RTI is growing.
Copyright © 2024 Thesaurus Software Ltd T/A Bright Software Group.
3 Shortlands, Hammersmith, London, W6 8DA
[email protected] 0345 9390019