HMRC to unveil new measures to relax payroll bureaucracy but will enforce new fines for late submissions


HMRC is set to unveil new measures to relax payroll bureaucracy for employers but is enforcing new fines for late submissions, warns Mitchell Charlesworth payroll director Ken Davies.

Payroll Dept - Ken & Jo
Pictured L-R: Payroll Manager Jo Nieman
& Director of Payroll Ken Davies

From March 6 it will no longer be mandatory for employers to complete the final report checklist on their last Full Payment Submission (FPS) or Employer Payment Summary (EPS) for a tax year.

The FPS/EPS submissions inform HMRC about payments and deductions made to employees.  

Mr Davies said the new measures would cut paperwork for small business owners and managers. However, he is also warning of new penalties being introduced by HMRC in April for late or non-submission on all payrolls.

“Traditionally, FPS/EPS information was included in the old end-of-year tax return. It continued under the recently introduced RTI (Real Time Information) reforms, which require firms to send payroll data to HMRC via the Government Gateway on or before the date each employee is paid. This resulted in around 10pc of many employers falling foul of compliance.

“HMRC has now decided to do away with the final FPS/EPS checklist questions from the RTI submission altogether, which will come as welcome news to many employers.

“However, there is no room for complacency. In October 2014, fines and penalties were introduced for businesses employing more than 50 employees for filing late RTI returns. From March 6 the same will be true for small and micro businesses employing up to 50 employees with penalties starting at £100 per month.

“HMRC will also fining businesses for not submitting the expected number of FPS submissions. Fines will further be applied to employers failing to send an EPS, even if they didn’t pay any employees in the tax month.”

For more information about RTI and how Mitchell Charlesworth can lift the payroll burden from your firm, contact Payroll Director Ken Davies or Manager Joanne Nieman on tel: 0151 423 7500 or by email.

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