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.

Posted byDenise CowleyinHMRCPayroll Software

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'.

Posted byAnn TigheinHMRCPayroll Software

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.

Posted byAnn TigheinHMRCPayroll Software