RTI penalties

I’ve received a penalty for failing to submit my payroll information on time. I’ve never received one before, why has this happened? 

1st June 2015

Under the Real Time Information (RTI) rules surrounding the online submission of payroll information, you can get a penalty if:

  • your Full Payment Submission (FPS) was late
  • you didn’t send the expected number of FPSs
  • you didn’t send an Employer Payment Summary (EPS) when you didn’t pay any employees in a tax month

You should pay the penalty within 30 days of getting the notice - you’ll be charged interest if you don’t.

Alternatively, you will be able to appeal online against a filing penalty, using HMRC’s Online Service. You can appeal if you think:

  • the penalty is not due
  • the amount of the penalty is wrong
  • you had a reasonable excuse for sending your reports late

Penalties for late payroll information were introduced for larger employers from 6th October 2014, but from 6th March 2015 employers with under 50 employees could also be subjected to these penalties.

Therefore, these smaller employers could receive their first late filing penalty if the 2014/15 Month 12 FPS late.

Until 2016, HMRC has allowed existing small employers (with fewer than 10 employees) to report monthly, on or before the last payday in the tax month. Existing who take advantage of the temporary reporting relaxation, must remember to use late reporting code ‘E’.


If you’re struggling to manage your payroll with the introduction of RTI and Auto Enrolment looming, contact your local TaxAssist Accountant who would be happy to look after your payroll affairs. 

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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