HMRC have been threatening with RTI fines for late submission of payroll reporting since April 2014 but it’s finally here. As of 5th March 2015 any late payroll reporting will incur a fine.
Employers will have a grace period of 3 days from the payment date. You must use code E when the return is filed.
The fine is dependent on the number of employees you have, as follows;
0 – 9 employees £100
10 – 49 employees £200
50 – 249 employees £300
Over 250 employees £400
You will even incur a fine if you don’t pay anyone but forget to file your payroll report to say there is no payment due.
If you are over 3 months late HMRC can charge an additional 5% surcharge.
Please make sure therefore, if you are running your own payroll, you have software than can support the RTI appropriately.