RTI payroll penalties now in place – how to avoid

The HMRC rules around PAYE filing changed from 6 March and now all companies with fewer than 50 employees are required to report payroll information on a “real time” basis, else an automatic penalty will be enforced. HMRC are moving away from issuing fines for late payment of PAYE, however, RTI filing is very much going ahead to ensure payroll admin is kept up to date. Depending on the number of employees the penalty will be between £100 and £200 – something employers will want to avoid. In addtiion, businesses who are three months late with submission can be issued with a 5% surcharge of the tax and national insurance amount due.

Employers will be fined for the following:

  • Employers Full Payment Submission (FPS) is filed after the deadline
  • The incorrect number of FPS’s are filed
  • If an Employer Payment Summary (EPS) isn’t filed for employees where no payment was made that month
Read more: Mini guide to monthly payroll commitments under RTI Businesses with fewer than 10 employees have until April 2016 before having to report fully under RTI regulations. For these smaller businesses their requirement is to report by the end of the last payday in each tax month. Figurit help doctors and dentists keep on top of payroll admin. For more information on real time payroll filing, contact the team.  T: 020 7376 9333 E: info@lansdellrose.co.uk

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