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New timetable for RTI penalties and interest – October 2014 late filing penalties

Posted by: edwinsmith on August 29th, 2014

Further to our article earlier this year on RTI penalties being phased in, the automatic ‘in-year’ late filing penalty will commence from 6 October 2014. To ensure a late filing penalty is not issued all filings due must be up to date as at 5 October 2014. Do not forget that if no employees have been paid in a tax period an EPS must be filed.

These rules apply to each PAYE scheme rather than each employer so an employer must ensure that all PAYE schemes submissions are up to date as at 5 October 2014 and filed on time thereafter.  Update - there is now  a    until March 2015 for employers with 49 employees or under.

Penalties will apply where submissions do not appear to have been filed by the due date, and may be issued where one of the following applies:

  1. payment information is not received as expected on an FPS  
  2. HMRC has not been told that no employees have been paid by sending an EPS

No penalty will arise for the first month in each tax year where there is a filing default. This means there are a maximum number of 11 fixed penalties per tax year that can be charged for filing failures.

New employers will not be issued with a penalty if their first FPS is received within 30 days of making their first payment to an employee. But after that, normal penalties rules will apply if an FPS is filed late.

The size of the late filing penalties depends on the number of employees within the PAYE scheme.

Number of employees Amount of the monthly filing penalty per PAYE scheme
1 - 9 £100
10 - 49 £200
50 - 249 £300
250 or more £400

HMRC will use the latest information available to determine the number of employees, and the size of the filing penalty for each period where a return is late.

Ordinarily, HMRC will send employers a filing penalty notice quarterly in July, October, January and April, where appropriate. These penalty notices show the amount of the filing penalty for each tax month identified in that quarter. For example, a penalty notice in July will show any filing penalties arising in the first quarter of the tax year - that is, month 1 (6 Apr to 5 May), month 2 (6 May to 5 June) and month 3 (6 June to 5 July). The first notices should be due in January 2015. 

Where a return is late for three months or more and the information that it would have contained has not been provided on a later return, a further penalty may be charged. This additional penalty is set at 5% of the tax/NICs that should have been shown on the late return. This will be used for the most serious and persistent failures.

All penalties are due for payment 30 days following the date of the penalty notice. Penalties not paid on time will attract interest. If you disagree with the penalty, you have a right of appeal. Further information can be obtained here.

The next phase of the RTI penalty regime is scheduled for April 2015 when automatic ‘in-year’ late payment penalties will commence. We will detail these nearer the time.

 Please contact us for further advice

Filed under: Business, Employers, PAYE

National minimum wage rate from 1 October 2014

Posted by: edwinsmith on August 21st, 2014

There are changes to the national minimum wage (NMW) rates in some categories from 1 October 2014. The new rates per hour are as follows with the current rates shown in brackets:

  1. £6.50 (£6.31) - the main rate for workers aged 21 and over
  2. £5.13 (£5.03) - the 18-20 rate
  3. £3.79 (£3.72) - the 16-17 rate for workers above school leaving age but under 18
  4. £2.73 (£2.68) - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship

If you have any queries please contact us

Changing your business address or name? Who and how to notify.

Posted by: edwinsmith on August 11th, 2014

LIMITED COMPANIES – change of registered office

If you are changing your registered office address you need to complete form AD01.  This can either be done on line at Companies House or by post.  The corporation tax department of HMRC gather data from Companies House on change of registered address and so it should filter through to the corporation tax office.  However, it would be advisable to check with them that it has been updated.


The dashboard can be used to update three business taxes.

  1. Corporation tax or self-assessment
  2. PAYE for employers
  3. VAT

If you do not have a business dashboard account but you are registered on line for corporation tax, VAT or PAYE then you can use your on line account to register a change of business address.  Please note the corporation tax office will not accept a change in the registered office address as this needs to be done through Companies House first as mentioned above.  Agents on line accounts do not have the facility for informing HMRC of a change of address.

If you do not have an on line account then you will need to inform HMRC for the following taxes as follows:-


Complete form VAT484, section 1, and forward to HMRC at the address shown on the form.  This form can be downloaded from the HMRC website.


Employers should write to HMRC at the following address:-

H.M. Revenue and Customs – Customer Operations Employer Office, BP 4102, Chillingham House, Benton Park View, NEWCASTLE-UPON-TYNE, NE98 1ZZ.


Further information can be obtained on HMRC website or please contact us.

After your staging date and ongoing activities

Posted by: edwinsmith on August 4th, 2014

Declaration to the Pensions Regulator

You will need to make an online declaration of compliance (registration) to the regulator about how you've complied with your employer duties within five calendar months of your staging date. This is a legal requirement to submit this information and therefore you may face enforcement action and incur a fine if you do not provide the information required.

You will need to provide information like the details of the pension scheme you've used for automatic enrolment and how many people you've automatically enrolled into it. Even if you haven't automatically enrolled anyone, you'll still need to complete a declaration.

If your declaration deadline falls on a Saturday, Sunday or public holiday, you can provide your declaration on the next working day.

Maintain records

Certain records must be kept about your staff and about the pension scheme. Some of these will be kept by the pension scheme, some must be kept by the employer. These include:

  1. Names and addresses of staff you've automatically enrolled.
  2. The contributions payable to the pension scheme and when they were paid.
  3. Any opt-in or opt-out notices you receive.
  4. Name and address of the pension scheme.
  5. Employer pension scheme reference or pension scheme registry number.

Keeping records is good governance and is proof that you've carried out your duties.  It is important that you know what these records are and where to get them from as you may be asked to produce them in the future.  You should therefore decide in advance how to store them so they can be easily accessed.  These records must be kept for a specified time, which in most cases is six years.

Ongoing tasks

Once your employees have been automatically enrolled, the following activities will become part of your normal regular business operations:

  1. Deducting and paying contributions into the pensions scheme.
  2. Processing opt outs promptly (where applicable).
  3. Processing opt-in requests promptly if an employee chooses to join the pension scheme.
  4. Assessing and enrolling new starters if they are eligible for the scheme.
  5. Monitoring existing employees’ age and earnings to ensure that any changes which affect their eligibility are appropriately dealt with.  A table of the main categories of worker and their entitlement can be found on our publications page.

This is the final installment in a series of articles regarding auto enrolment as detailed on our Employer Action Plan. Previous installments detailed below:

1         Know your staging date

2         -

3         - Develop an initial plan

4         - Know your workforce

5         -Check processes and software

6         - Review your pension arrangements

7         -Communicate to staff

8         -On or just after your staging date

9         -How to automatically enrol your staff

For more information on pensions or to discuss your auto enrolment action plan please contact us .