Penalties to be issued by HMRC from October this year for late submissions by employers, or their agents, for Real Time Information could incur further fines to businesses, says Wilkins Kennedy LLP, one of the UK’s top 20 accountancy firms.
From 6th October 2014, HMRC will introduce in-year penalties for businesses failing to file PAYE submissions on time. A Full Payment Submission (FPS) is an active way for employers to send in details of employees to HMRC and they must be submitted each time businesses make a payment to an employee.
Penalties are based on staff numbers and are only issued quarterly – so businesses could build up large fines without realising, until they get the bill from HMRC.
Tony Reeves, Payroll Supervisor for Wilkins Kennedy LLP Southern Region, says: “HMRC is only going to notify employers quarterly at the end of July, October, January and April, so the possibility of fines is mounting for many businesses, who may not necessarily know until the bill comes through at the end of the quarter.
“More needs to be done to ensure that businesses are aware of penalties and fines that may be incurred. Businesses are also urged to do their homework and make sure they are up to date.”