RTI Penalties from October 2014

HM Revenue & Customs (HMRC) have recently published guidance for employers on the penalties for late filing under real time information (RTI). From the beginning of October 2014 employers who file their payroll information late or inaccurately will receive penalties.

Penalties can be imposed if:-

– a Full Payment Summary (FPS) is late,

– the expected number of FPS is not submitted during the year,

– a nil payment or no activity Employer Payment Summary (EPS) is not filed when no employees are paid in a tax month.

Penalties will depend on the numbers of employee your business employs as shown below.

Number of employees Monthly penalty
1 to 9 £100
10 to 49 £200
50 to 249 £300
250 or more £400


If the filing of a return if over three months late It can attract an additional penalty of 5% of the tax and NIC that should have been reported.

It is important to remember that HMRC already estimates the PAYE liability and adds it to the employer’s PAYE account when employers do not submit either an FPS showing a payment to employees or an EPS telling HMRC that no payments have been made to any employees. This is called a ‘specified charge’.

HMRC will issue a notice for any penalties due stating what is owed, how to pay and what to do if you don’t agree with the penalty. If the penalty is not paid within 30 days, interest will be charged.

Appeals can be made online or by letter to HMRC who do outline some acceptable grounds for an appeal.

If you would like to find out more about how Leonherman can help you with the additional administration for your payroll, giving you the time to focus on growing your business, get in touch or call us on 0161 249 5040