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Are you confident you are compliant with HMRC and RTI? – No 1 in a series of articles

18 July 2014 by Crystal HR & Payroll Ltd

What happens if you don’t report payroll information on time

HM Revenue & Customs (HMRC) is working closely with employers, payroll providers and software developers to make it easy for employers to comply with operating PAYE in real time, and to make it part of their normal payroll processes.

You must submit a Full Payment Submission (FPS) each time you make a payment to an employee. The final FPS for an employee should be sent on or before their last pay day in the tax year and will be used to update the individuals’ tax, National Insurance contributions (NICs) and student loan deduction records.

If you do not pay any employees in a tax month, and therefore have no FPS to send to HMRC, you must notify HMRC – by sending an Employer Payment Summary (EPS) – by the 19th of the following tax month. This will make sure HMRC don’t wrongly issue a penalty because they were expecting an FPS from you.


Specified charges

If you don’t submit your FPS on time, or you don’t tell HMRC by sending an EPS that you haven’t paid any employees in the tax month, they may raise an estimated charge – referred to as a ‘specified charge’. HMRC may raise a specified charge for each tax month that you don’t send a real time submission.

A specified charge is HMRC’s calculation of what you owe, based on your previous PAYE payment and filing history.

You can find out more about specified charges in the guide ‘PAYE/National Insurance payments and deadlines’.

PAYE/National Insurance payments and deadlines

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