Payroll year end process - IRIS Payroll Business / Bureau

Step 7: HMRC Penalties

When can HMRC charge a penalty?

HMRC may charge a penalty if:

• Your FPS is late.

• You omit to send an FPS.

• You omit to send an EPS when no employees are paid in a tax month.

HMRC will not charge a penalty if:

• You are a new employer and you sent your first FPS within 30 days of paying an employee.

• It’s your first failure in the tax year to send a submission.

  Does not apply to annual PAYE schemes.

What happens if you get a penalty?

HMRC will send penalty notices every quarter. The notice will tell you what you owe, how to pay the penalty, and how you can appeal your penalty. External Website

The penalties do accrue interest; however, you will not be charged any interest if you pay the penalty within 30 days.

You can pay an HMRC penalty here. External Website

Appealing a penalty

HMRC will consider a penalty appeal if:

• You believe the penalty is not due,

• The amount of the penalty is wrong.

• You had a reasonable excuse for late filing e.g. bereavement, ill health, theft or crime, natural disaster.

If you don’t pay the penalty within 30 days of receiving it, HMRC may charge you interest.

More information: What happens if you don’t report payroll information on time.
External Website

 

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