PART 1: DATES, DEFINITIONS AND OBLIGATIONS
The quality of the disclosure will also be considered and whether it was prompted in the belief that HMRC had discovered, or might be about to discover, the inaccuracy. Once HMRC have notified an employer of a compliance check of any type a disclosure cannot be classed as unprompted. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS Penalty Percentage Range Behaviour Maximum Penalty Quality of disclosure range Prompted Unprompted Careless 30% 15% to 30% 0% to 30% Deliberate but not concealed 70% 35% to 70% 20% to 70% Deliberate and concealed 100% 50% to 100% 30% to 100% No penalties can be levied for errors that occur where reasonable care has been taken. HMRC can agree to suspend a penalty if the employer agrees to certain measures being put in place to prevent recurrence. Where these targets are met to HMRC’s satisfaction the penalty can then be cancelled. These penalties will continue under RTI based on the level of accuracy on any Full Payment Submission. Late filing of end of year returns A number of penalties can be levied by HMRC for offences in connection with year-end returns and these also apply to RTI. The penalties were in respect of both the P14 (employee level) and the P35 (employer or PAYE scheme level) returns historically and under RTI the Full Payment Submission and Employer Payment Summary, and they fall into the following categories: • failing to file online when required to do so; • failing to file a return at all or by the due deadline. The due date for the final FPS or EPS for the tax year is 19th April (penalties were only levied from 20th May 2014 for the 2013/14 tax year, and from 20th April for 2014/15 tax year onwards. The penalty is £100 per month per 50 employees, rounded up to the next 50, for the first 12 months. For the returns due on 19th May 2011 Extra Statutory Concession B46, which gave a seven day grace period before penalties could be levied, no longer applied. Interim penalties are sent out in September, January and May if the return is still outstanding. Late filing of in-year Full Payment Submission (FPS) This new penalty was introduced from 6th October 2014 for any FPS received after any date of payment shown within the FPS file for employers with 51 or more employees. Identical penalties for employers with up to 50 employees were introduced on 6th April 2015. No printing, copying or reproduction permitted. HMRC may choose to levy more than one penalty - for example, a penalty for failing to file online as well as late filing and inaccuracy penalties.
116
Made with FlippingBook - Online magazine maker