With effect from 6th March 2015 HMRC penalty regime for late filing of RTI reports will go live. This means that failure to submit payroll data by electronic submission on or before pay day will generate a penalty. The penalties are as follows and apply for every month or part month that the return is outstanding;
| Number of Employees | Monthly Penalty |
| 1 to 9 | £100 |
| 10 to 49 | £200 |
| 50 to 249 | £300 |
| 250 or more | £400 |
If you are more than 3 months late in submitting your return then you can be charged up to 5% of the tax and NIC that you should have reported.
We will make sure that your returns are submitted on time; however we can only do so if you provide us with the information in time. To guarantee that we can do this we need your payroll information no later than 3 working days prior to pay day.
For further information regarding penalties please visit https://www.gov.uk/what-happens-if-you-dont-report-payroll-information-on-time
There is also a penalty regime in place for late payment of your PAYE & NIC liability. The penalty for late payment are as follows;
| Number of defaults in a year | Penalty percentage applied to the amount that is late in the relevant tax month |
| 1-3 | 1% |
| 4-6 | 2% |
| 7-9 | 3% |
| 10 or more | 4% |
There are further penalties if you pay less than is actually due. If you still haven’t paid a monthly or quarterly payment in full after 6 months, you will be charged an additional penalty of 5% of the amounts unpaid. A further penalty of 5% will be charged if you have not paid after 12 months.
These additional penalties apply even where only 1 payment in the tax year is late.
Further information can be found at https://www.gov.uk/what-happens-if-you-dont-pay-paye-and-national-insurance-on-time
