All employers know they need to file their Full Payment Submission (FPS) under Real-Time Information (RTI) on or before the day they pay their employees. If the FPS is more than three days late, HMRC will firstly send an education letter to the employer, then a penalty notice if there is a second late return.
If you submit your FPS before the beginning of the tax period in which the employees are due to be paid, this can also cause problems.
Although each FPS return includes the tax period to which the return relates, HMRC‘s computer apparently can’t read that date and process the return correctly.
If the HMRC computer can’t find an FPS submitted in the period to which it relates (or shortly afterwards), it will assume the return is missing and issue an automatic penalty.
The HMRC-approved software (PAYE Basic Tools) permits employers to submit RTI returns early, without warning that this means you may incur a penalty!
If you receive a penalty for submitting your FPS late, but you think it was on time, please contact us without delay.
We can help you appeal against any incorrect penalties.
