PAYE/National Insurance Late Payment Penalties

How RIFT Accounting Can Help

If you're an employer operating PAYE as part of your payroll, you've got certain responsibilities each tax month (from the 6th of one month to the 5th of the next). You've got to send a Full Payment Submission (FPS) on time, with penalties for filing late. If HMRC don't receive a report from you within 120 days, they'll close your PAYE scheme down. 

You'll face a penalty if:

  • Your FPS is submitted late.
  • You send the wrong number of FPS reports.
  • You fail to send an Employer Payment Summary (EPS) when you didn’t pay any employees in a tax month.

The amount the penalty is depends on the number of people you've got working for you. A three-month delay might see you swallowing an additional penalty of 5% of the tax and National Insurance you should have declared. Beyond that, HMRC will apply penalties based on the amount of lost revenue and whether they feel the errors were genuine or deliberate.

With RIFT Accounting in your corner, you'll always be sure that your paperwork is accurate and up-to-date. If you're already in trouble, we can even negotiate with HMRC on your behalf to minimise the damage. Depending on the circumstances, we may be able to organise an appeal for you to get the penalty reduced or overturned. For example, you may think the penalty was wrongly issued, or is too high given your circumstances. Other grounds for appeal might include such things as:

  • Death/bereavement. 
  • Fire/flood/natural disaster.
  • Ill health.
  • IT difficulties.
  • You no longer have any employees.
  • You've made no payments to employees.

Whatever difficulty you're in, talk to us about your options and we'll get to work fixing things, so you can get back to work.

Call us on 01233 653006 and see how we can help you today.

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