HMRC Penalties

They are not nice to receive, so here some information to help you avoid an HMRC penalty.

HMRC His Majesty's Revenue and Customs is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support, the administration of other regulatory regimes including the national minimum wage and the issuance of national insurance numbers. issue penalties for late submissions based on the number of employees

Number of employees	Monthly penalty
1 - 9	£100
10 - 49	£200
50- 249	£300
250 or more	£400

HMRC may issue penalties if you resubmit your FPS Full Payment Submission is an RTI online submission to be sent on or before each payday. This informs HMRC about the payments and deductions for each employee..

• If you’re over 3 months late you can be charged an additional penalty of 5% of the tax and National Insurance A system of contributions paid by workers and employers in the UK, which funds various state benefits, such as the State Pension and Jobseeker's Allowance. that you should have reported.

• New employers will not be penalised if their first FPS is received within 30 days of making their first payment to an employee. HMRC will send employers a filing penalty notice quarterly in July, October, January and April, if appropriate.

HMRC impose penalties on employers who fail to:

• Make the online submissions on time.

• Pay the liabilities on time.

• Keep the necessary records.

• Operate PAYE PAYE or Pay as you earn is an HM Revenue and Customs’ (HMRC) system to collect Income Tax and National Insurance from employment. or NI correctly.

• Make the correct statutory payments.

• Provide HMRC or the employees with the relevant forms on time.

• It is important that employers comply with all the regulations.

Good to know...

• GOV.UK Pay a PAYE late payment or filing penalty. External website

• GOV.UK What happens if you do not report payroll information on time. External website