HMRC introduce penalties for incorrect payroll information submissions
HMRC will begin introducing penalties for employers who file late submissions of their payroll information. For employers with over 50 employees, this will begin from 6th October 2014.
For employers with less than 50 employees, this will be introduced from 6th March 2015.
The penalties may be issued for several reasons:
• Your FPS is late
• The number of FPSs sent is incorrect
• An EPS wasn’t sent when no employees were paid in a tax month
These monthly penalties can be as high as £400 and are dependent the number of employees you have.
However, penalties won’t be charged for new employers that send their first FPS within 30 of paying an employee or it’s your first failure in the tax year to send a report on time.
HMRC will issue a late or non-filing General Notification Service [GNS] warning message to alert employers that they appear to be default, allowing you the opportunity to update your information before a penalty is issued via a filing penalty notice.
Read more on the HMRC website to fully familiarise yourself with these new payroll rules.
If you're unsure on how to issue an FPS via your IRIS payroll software, find the answer on the KnowledgeBase.
If you're struggling to keep up with all the changes in payroll, why not consider outsourcing your payroll to the IRIS Managed Payroll team. Find out more about the benefits of outsourcing by reading the latest guide "Why payroll outsourcing could be the best decision you make today."