Sep 2014
17
HMRC - online penalty warning messages
In order to assist employers keep their records up to date and avoid potential penalties, HMRC issue electronic alerts:
Message - Late Filing Note: Your full Payment Submission (FPS) has been sent late – FPS must be sent on or before the date of the earliest payment on FPS – If you have a valid reason for sending your FPS after any of the payment dates – you must complete the late reporting reason on future FPSs.
Message - Non Filing Notice: HMRC has not received the expected number of FPSs. Check whether any FPSs are still due for the tax period – HMRC works out how many FPSs you are expected to report based on previous filing data. If any FPS is still due, send it as soon as possbile and include a Late Reporting Reason if applicable.
- If you have stopped being an employer tell HMRC
- If you have not paid anyone send an Employer Payment Suymmary to tell HMRC
- If you have changed the amount of time between paying your employees e.g. from weekly to monthly, tell HMRC.
Message - Late Payment Notice – HMRC has not received your full payment when it was due
- Check your payments records against the amounts reported on your FPSs
- Pay any outstanding amounts to bring your payments up to date
- If the date that HMRC received your payment is after the date that the payment is due, make sure that future payments are made on time
- If the amount paid does not match the amount you reported on your FPSs, check your records to find out why
- If you offset anything against the FPS amount, you must send an Employer Payment Summary to correct this
- If you have made a mistake – correct payroll error.
Sep 2014
12
RTI late filing penalties delayed for small employers
Welcome news as the start date for automatic in-year filing penalties for late submission of an RTI return will be delayed until 6 March 2015 for PAYE schemes with less than 50 employees. Late filing penalties for PAYE schemes with 50 or more employees will start on 6 October as originally planned.
HM Revenue & Customs (HMRC) has said that the extra time will give smaller employers, who appear to be experiencing the greatest difficulties with RTI, more time to adjust their processes to comply with RTI requirements. It also gives HMRC more time to update its systems and enhance its guidance and customer support.
HMRC will send electronic generic notification notices to all employers during September so they will know when penalties will start for them.
These notifications will confirm whether HMRC’s records show that the employer has:
• less than 50 employees or
• 50 or more employees
The date on which the number of employees is to be measured is the 6 October but HMRCs count will be based on an earlier date. If an employer has been miscategorised, they will have to write to HMRC’s Employer Office to tell them they have less than 50 employees on 6 October.
The in-year penalty notices will be issued quarterly with the first ones expected in early 2015. Appeals will be accepted where there is a reasonable excuse for submitting the return late; an online appeals service is available for these.
All penalties are due for payment 30 days following the date of the penalty notice. Penalties not paid on time will attract interest.
Sep 2014
4
What will happen if you do not report payroll information on time?
HM Revenue and Customs (HMRC) have issued new guidelines for employers explaining about late/non filing penalties, inaccurate reporting and specific charges and how to avoid penalties.
The new guidance explains to employers that penalties will be introduced from 6th October 2014 for anybody that does not report their payroll information on time (late submissions).
These penalties can arise if a Full Payment Summary (FPS) is sent late, if the employer does not send the expected number of FPSs, or if an Employer Payment Summary (EPS) is not send when the employees are not being paid in any given period.
The guidance will also set out the limited circumstances in which a penalty will not be charged.
Aug 2014
27
Withdrawal of HM Revenue & Customs (HMRC) 0845 helpline telephone numbers from December 2014
All HMRC helplines now have 03 numbers, and the majority of calls by customers use those numbers. To help create a smooth transition to the new 03 numbers, and minimise inconvenience for customers, HMRC have continued to use their 0845 numbers.
0845 numbering stops December 2014
In December 2014, the 0845 lines to HMRC helplines will stop being used, and all calls to HMRC helplines will need to be made using 03 numbers.
To prepare for that change, from late August, customers using 0845 numbers to call HMRC helplines will hear a message letting them know that the 0845 line will be closing. The call will still be handled as normal, but customers will be given the relevant 03 number for the helpline.
In December 2014, when HMRC stop using the 0845 numbers, customers who continue using those numbers will hear a message saying that the line is closed. The message will give them the 03 number for the helpline and the call will then end. The customer will need to dial the 03 number to receive the assistance they were looking for.
Jul 2014
28
Failure to complete end of year declaration 13/14
HMRC have now provided a statement about the small number of employers who did not complete the end of year questions and declaration when submitting their final FPS or EPS for 13/14.
HMRC expects all employers to comply with their legal obligations. Where the final indicator has not been completed but all other obligations are met , HMRC will automatically process the return and calculate the final liability (if any). Employers who fail to complete the end of year questions & declaration will miss an opportunity to demonstrate their low risk status in every respect. This failure will feed into the compliance risk assessment processes.
At the moment HMRC do not have an plans to contact employers who fail to complete the final submission indicator. HMRC are continuing to educate employers to make sure that all of their RTI submissions are full and complete and that they meet their legal obligations. They have said they will monitor the situation and consider whether any further action is required.
Jul 2014
15
Class 1A NIC payment for 13/14 deadline 22nd July
Employers should make sure they pay 2013/14 Class 1A National Insurance contributions (NICs) by the deadline of 22 July for electronic payments or 19 July for cheques. If they do not they may get a late payment penalty. Employers should check they have the right reference number to help the payment go straight through.
Ways to pay PAYE/NICs
HMRC strongly recommends that you use an electronic payment method.
Paying electronically is fast, secure and convenient provided you use an accurate reference number - and it's mandatory for employers with 250 or more employees.
It's your responsibility to make sure payments are made on time, whichever payment method you use. You may be charged interest and a penalty if your payment isn't received by the deadline.
HMRC counts all of the payment methods listed below as electronic:
• Direct Debit
• Online debit or credit card using BillPay
• Bacs Direct Credit
• Faster Payments by online or telephone banking
• CHAPS
• GBS Transfer
• Bank Giro
• payment at the Post Office
You can find out more about these and other payment methods by reading the guide 'How to pay PAYE/Class 1 National Insurance/CIS'.
Jul 2014
10
When will HMRC Raise a Filing Penalty?
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
PAYE for employers: telling HMRC that your business has ceased
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:
- run their final payroll
- complete the 'Final submission because scheme ceased' and 'date scheme ceased' boxes on their FPS for the pay period
- enter a leaving date on each employee's payroll record
• 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:
- stopped paying people in 2013 to 2014; and
- have already submitted all of their payroll information
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.
Jun 2014
9
Thousands of underpaid workers benefit from HMRC NMW investigation 6 June 2014
More than 22,000 workers denied the National Minimum Wage (NMW) have received £4.6m in unpaid wages following an HMRC crackdown.
HMRC conducted 1,455 NMW investigations in 2013/14 and found arrears in 47% of cases – the highest strike rate since NMW was introduced.
During the period, HMRC issued 652 financial penalties worth £815,269 and recovered average arrears of around £205 per worker.
Jennie Granger, director of enforcement and compliance at HMRC, said: “Paying the National Minimum Wage is not a choice – it’s the law. HMRC will continue to ensure that workers get at least the wage to which they are legally entitled.
“Where an employer ignores these rules, we will ensure that any arrears are paid out in full and the employer is fined. Rogue employers be warned – we will find you and you will pay.”
In one case a social care provider had not paid its staff for travelling time and other hours worked and was told to repay over £600,000 to almost 3,000 workers.
And a recruitment agency was ordered to pay £167,000 to workers, including some it had classified as unpaid interns.
As a result of the investigations, TUC general secretary Frances O’Grady is calling for further action to be taken by the government and for employers that knowingly underpay their staff to be named and shamed.
“Nearly a million UK workers rely on the national minimum wage, which has become a vital lifeline. There must be no hiding places for companies who flout it.
“The action taken by HMRC is a welcome step but must be the beginning of a concerted campaign that also raises awareness about the right to a legal wage among those being exploited.”
Bright Contracts – Employment contracts and handbooks.
BrightPay – Payroll & Auto Enrolment Software.
May 2014
30
HMRC Dashboard
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.
