What is an FPS?
An FPS is an electronic submission made to HMRC. The FPS contains employer & employee information. It also contains payment information such as pay and deductions made to each employee.
What happens if an FPS is submitted late?
If an FPS is submitted late to HMRC they may issue a penalty notice. HMRC may also raise a specified charge based on an estimate of how much they think an employer should pay. HMRC will base the charge on an employer’s previous PAYE filling.
When would an employer be charged a penalty?
HMRC issue penalty notices on a quarterly basis, employers may receive a penalty if
The Full Payment Submission (FPS) was submitted late
The employer did not send the expected number of FPSs
The employer did not send an Employment Payment Summary (EPS) when they did not pay any employees in a pay period
When would HMRC not charge a penalty?
The employers FPS is late but all reported payments on the FPS are within 3 days of your employees’ payday, however employers who persistently file after the payment date but within 3 days may be considered for a penalty
The employer is a new employer and they sent their first FPS within 30 days of paying an employee
Its an employer’s first failure in the tax year to send a report on time
What are the penalties for filling late FPSs?
Penalties vary depending on the number of employees that work for the employer. The Monthly penalties are as follows
1 to 9 employees £100
10 to 49 employees £200
50 to 249 employees £300
250 or more employees £400
If employers are more than 3 months late they may also be charged an additional 5%.
Can an employer appeal a penalty notice?
An employer can appeal a penalty notice if they think the amount is incorrect, the penalty is not due or if the employer thinks they have a reasonable excuse for filing the FPS late.
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