Payroll Penalties: Beware!

Whilst payroll RTI (real time information) was introduced years ago, as of April 2015, penalties of £100 (minimum) can now be charged if returns are filed late or HMRC does not receive the expected number of returns.

Penalties will not be charged for the first month that the Full Payment Submission (FPS) is submitted late, but in subsequent months, a penalty will be levied. For small employers this is £100, but more for larger employers.

Employers with nine or fewer employees can still take advantage of an exemption for 2015/16, provided they remember to use late reporting code E to claim the exemption.

Employers must also be aware that interest will now be charged on late PAYE payments.