Local experts warn of difficult to appeal and possibly severe penalties ahead of HMRC PAYE clamp down
In April 2013 Her Majesty’s Revenue & Customs (HMRC) introduced a new Pay As You Earn (PAYE) system, meaning employers would have to submit payroll information in real time.
Known as Real Time Information (RTI), businesses now have to submit pay and deduction details on or before the day they pay their employees. Whilst many businesses have embraced the new system, leading local accountants Bevan Buckland have warned that HMRC are set to introduce penalties for businesses that fail to pay or submit the correct information on time.
“From October 2014, if you fail to file your PAYE submission on time there is a real chance you will be hit with a fixed penalty” warns Tina Davies, Payroll Manager at Bevan Buckland. “We are also warning our clients as these penalties will be extremely difficult to appeal”.
The changes mean that all employers must submit a Full Payment Submission (FPS) as per the new guidelines every time they make a payment to an employee. They must also submit an Employer Payment Summary (EPS) if no payments have been made or if the business has any statutory payments to claim. PAYE must also be paid by the 19th of the month following the payroll process date to avoid payment penalties.
Tina added: “The late filing and payment penalties range from £100 to £400 depending on the number of people you employ. You will also be charged for each month the submission is not filed on time. With a maximum of 11 fixed penalties a year, and a further 5% fine if your submission is late for three months or more, these penalties could have a significant impact, particularly for small to medium-sized businesses”.
If you are looking for advice and support with the new submission system, or indeed any aspect of payroll, please don’t hesitate to contact Tina or one of her team.
For further information about how Bevan Buckland can help your company with management of the payroll contact Tina Davies on 01792 410100 or by email at help@bevanbuckland.co.uk.
To find out what other services are offered by Bevan and Buckland visit www.bevanbuckland.co.uk.
Tina Davies
MCIPP(dip) Member Chartered Institute of Payroll Professionals
Tina Davies is manager of Bevan Buckland’s Swansea Payroll Department, we also operate a payroll bureau service from the firm’s Pembroke and Haverfordwest offices.
bevanbuckland.co.uk/services/payroll-auto-enrolment Tel: 01792 410117
Bevan Buckland Accountants Swansea Tel: 01792 410100
Bevan Buckland Accountants Haverfordwest Tel: 01437 760666
Bevan Buckland Accountants Pembroke Tel: 01646 682383
Bevan Buckland Accountants Carmarthen Tel: 01267 233115