Penalties
The late filing penalty will be based on the size of the PAYE scheme. Up to 5th April 2017, no penalty was imposed if the FPS was received up to three days after pay day, however this easement was abolished as of 6th April 2019. One un-penalised default in a 12 month period is permitted. The penalty period for all employers for late filing is one month even if the employees are weekly paid. Late filing penalties will be charged quarterly. An additional tax-geared penalty will apply if the FPS is more than three months late. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS Number of employees Penalty 1-9 £100 10-49 £200 50-249 £300 250+ £400 No penalty will be levied against a new PAYE scheme if first FPS is within 30 days of first payment to employees. Late/underpayment penalty A late payment penalty was introduced from 6th April 2015 and is levied automatically where the remittance paid by the employer is less than the value derived from the FPS and any amendments on the EPS. There is be a de-minimis limit of £100 below which a penalty will not be generated. The penalty is based on the current payment surcharge for failing to pay in full and on time as follows: • 1-3 defaults 1% of the total of the defaults • 4-6 defaults 2% of the total of the defaults • 7-9 defaults 3% of the total of the defaults • 10 or more defaults 4% of the total of the defaults, plus • tax unpaid after 6 months - additional 5% of unpaid tax • tax unpaid after 12 months - further 5% of unpaid tax.
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