From 6 March 2015 fines will be imposed on employers with fewer than 50 employees.
You can get a penalty if:
- your Full Payment Submission (FPS) was late
- you didn’t send the expected number of FPSs
- you didn’t send an Employer Payment Summary (EPS) when you didn’t pay any employees in a tax month
HMRC won’t charge a penalty if:
- you’re a new employer and you sent your first FPS within 30 days of paying an employee
- it’s your first failure in the tax year to send a report on time (this doesn’t apply to employers with fewer than 50 employees for the tax year 2014 to 2015)
How much you’re charged depends on how many employees you have.
Number of employees - Monthly penalty
1 to 9 - £100
10 to 49 - £200
50 to 249 - £300
250 or more - £400
If you’re over 3 months late you can be charged an additional penalty of 5% of the tax and National Insurance that you should have reported.
If you run more than 1 PAYE scheme, you can be charged penalties for each.
For assistance on all payroll matters do get in touch before the penalty regime starts!