When real time information (RTI) was introduced it was intended to make PAYE reporting a lot easier for employers. However, it has also created a number of extra filing deadlines, and new penalties for missing them.
You’re now required to send a full payment submission (FPS) report each time your employees are paid, on or before the payment date. If you’ve less than 10 employees however, these requirements are relaxed.
If your employees haven’t received a payment within the tax month, you should submit an employer payment summary (EPS) by the 19th of the following tax month. Alternatively, if your employees are only paid in one month of the year, you can register the PAYE scheme as an ‘annual scheme’, and submit RTI reports just once each year.
As of 6 October 2014, employers with 50+ members of staff are charged a penalty for every RTI reporting deadline missed, but you’re granted one late filing per tax year. The penalty notices will begin to arrive in employer’s mailboxes this month, and if you do receive one, please let us know as soon as possible.
If you’ve less than 50 staff members, penalties for missed RTI deadlines will start from 6 March 2015. Unfortunately, smaller employers aren’t permitted to have a penalty free month in 2014/15.
The end-of-year questions on the form P35 have now been dropped from the final FPS or EPS to be submitted for 2014/15 – this is great news for all employers!
If you submit a final FPS or EPS after 6 March 2015 for the 2014/15 tax year, you shouldn’t (in theory) have to answer those questions. However, the change was announced after most payroll programmes were updated for 2014/15. HMRC’s free Basic PAYE Tools software also won’t be suited to the end-of-year procedure changes until July 2015. So although HMRC won’t actually need the information, it looks like you’ll still have to answer those questions for 2014/15.
If you’ve any concerns about late filing penalties, or do happen to receive one, please contact us.