HMRC gives support for customers who need extra help
HMRC have principles of support for customers who need extra help. These set out their commitment to support customers according to their needs, and underpin the HMRC Charter.
PAYE Real Time Information (RTI) penalties
Late filing and late payment penalties will continue to be considered on a risk-assessed basis rather than issued automatically. The first penalties for this tax year (beginning 6 April 2021) will be issued in August 2021.
Late filing penalties
As in previous years we will also continue to not charge penalties automatically if a Full Payment Submission (FPS) is filed late but within 3 days of the payment date and there remains no pattern of persistent late filing. This is not an extension to the current statutory position on reporting PAYE payments which remains unchanged.
Employers are still required to file their submissions on time unless any of the circumstances set out in the sending a FPS after payday guidance arises.
Employers who persistently file after the statutory filing date but within 3 days, will continue to be monitored and may be contacted or considered for a late filing penalty as part of our risk-based approach.
Late payment penalties
The due date to make PAYE payment to HMRC electronically remains the 22 of the month (or quarter if you are eligible to pay quarterly) following the tax month/period to which they relate. If you pay by cheque or other non-electronic payment methods, you must continue to make payment by 19 of the following month or quarter to which the payment relates.
How to pay your PAYE guidance is available.
If you pay late, HMRC may charge interest on the amount outstanding which will continue to accrue until the total amount is paid. There is guidance on how we calculate late payment penalties and how employers can appeal them.
Reporting your payroll information accurately and on time
Accurate and timely reporting of your payroll is important, it helps to ensure that your employees pay the right amount of tax and supports Universal Credit. Universal Credit is designed to increase the financial benefits of working and provide you with a more flexible workforce.
Late or inaccurate reporting can negatively impact on your employees as Universal Credit payments are linked to the payroll information you report. It is therefore very important to report your payroll accurately and on time, as changes in earnings can affect the amount of Universal Credit your employees receive.
HMRC and debt collecting
HMRC has also taken a relaxed approach to demanding and collecting tax. However, in a recent policy paper it says that this is coming to an end shortly as the UK emerges from the pandemic
HMRC is restarting its more aggressive approach to collecting tax debts. If you receive a demand, don’t ignore it. If you’re struggling to pay, contact HMRC which says it will take an understanding approach.