HMRC changes in relation to monthly paye declarations and late contribution payments penalty fees

Dear Clients,

 

In connection with the changes introduced by HMRC effective from 05/03/2015 there will be late penalty payments for late employee/director payroll declarations (Full Payment Submission reports) as well as late payment of tax and NI contributions (these are the amounts you were provided in the payslips emails sent by our payroll department).

 

These penalties will be as follows:

  1. Late Full Payment Submission declaration – £100 – automatic penalty calculated from 05.03.2015 per every month’s delay (e.g. February 2015 declaration sent late in June 2015 will be subject to 4 months’ late fees – 4x £100 = £400)
  2. Late tax and NI contributions payment – £100 – similarly as above, it is an automatic penalty calculated from 05.03.2015 per every month’s delay.

We would like to remind you to pay these contributions by the 19th month to avoid the late fees.

EXAMPLE:
For declaration for the month 06.01.2015 – 05.02.2015 the payment is due by the 19th February 2015. Until now, if you have failed to pay by this date, HMRC would be adding small daily charges. However, as of 05.03.2015 according to the new HMRC rules, if you have missed the 19th February deadline and also missed the 5th March deadline and pay e.g. 10.03.2015, HMRC would not only be adding the daily charges as previously, but also the £100 penalty for missing the 5th March deadline. If you still haven’t paid by 5th April, there will be a total of £200 penalty plus daily charges, etc.

Hence, if you owe anything to HMRC in regards to PAYE, please make sure you pay all the outstanding fees before 05.03.2015.

TO SUM UP:

If your salary is due for submission and payment on 31.01.2015, then:

  1. FPS declaration must be sent by the salary payment date, i.e. 31.01.2015
  2. Tax and NI contributions must be paid by the 19.02.2015

Late Full Payment Submission Final Year that is due by 05.04.2015 is also a subject to £200 monthly late penalty fee (even if you submit it one day late, 06.04.2015).

 

Furthermore, we would like to inform that all companies already registered for PAYE that wish to register new employees and declare their earnings back to April 2014 to qualify them for pension scheme for that period, may still do so until the end of February 2015 without incurring penalties.

 

IMPORTANT: How much penalty you have depends on the number of employees in the given company. The quoted penalty fee of £100 aplies only to companies with 1-9 employees. The penalty will change for companies employing more employees, according to the below table:

 

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

 

Should you be interested in declaring additional employees or have any questions, please do not hesitate to contact us:

  • Contact details:
    Patrycja Kozłowska
    Payroll Department
    Telephone: 0208 567 99 44

Sincerely,
Capital Business Links Ltd Team