HM Revenue and Customs has introduced penalties for employers who report their payroll information late from:
- 6 October 2014 for employers with 50 or more employees
- 6 March 2015 for employers with fewer than 50 employees
When penalties are charged
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:
- your FPS is late but all reported payments on the FPS are within 3 days of your employees’ payday (this applies from 6 March 2015 to 5 April 2016)
- 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 who register with HMRC as an annual scheme or have fewer than 50 employees for the tax year 2014 to 2015)
Existing employers with fewer than 10 employees, who take advantage of the temporary reporting relaxation, must remember to use late reporting code ‘E’.
How much will you pay
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.