PAYE Late Filing Penalties

By August 12, 2015Payroll Outsourcing

HMRC can apply penalties if filing of Real Time Information (RTI) is late. Initially this was only for larger companies but now applies to all employers regardless of the size of their workforce.  HMRC have now issued the first in year notices to employers with fewer than 50 employees.

Real Time Information

Real Time Information, or RTI, is the information that needs to be sent to HMRC for every pay day.  It is a legal requirement that RTI is submitted on or before the date that employees are paid, or due to be paid.  An RTI submission contains a lot of information, and has meant we no longer have to submit things like P45 or P14 forms.

Late Filing Penalties

HMRC are not automatically applying the fines, and will take a risk based approach with a proportionate response for more serious defaults. HMRC have said they do not want to apply the penalties, but do want the RTI files submitted on time.  It is possible to appeal, and if you receive a penalty notice, but were only a day late, you should follow the instructions on the HMRC website.

For 2015/16 the penalties are as follows:

Number of Employees Monthly Penalty
1 to 9 £100
10 – 49 £200
50 – 249 £300
250 or more £400

For up to date information, and further details of how to appeal, visit the HMRC website.

RTI submission is part of the service provided by Payroll Options, and as long as we have completed the payroll before the payday, the RTI submissions will be made on the correct date.

For more information about RTI filing and penalties see here