With effect from October 2014, several important changes are being made to payroll processing. This quick guide runs through the essentials, ensuring you are up to speed and will not incur any unnecessary penalties.
Firstly, our dear friend RTI. October sees the start of the RTI submission rules being significantly tightened. Employers with 10 or more employees and new businesses started in the tax year 2014-15, must ensure that all FPS and EPS returns have been correctly submitted.
In acknowledgement of imposing a new regime on businesses, penalties for incorrect or tardy submission were waived. Now, however, if employers with more than 50 employees do not make the returns in time then late submission charges come into force with immediate effect. Businesses with fewer than 50 employees have grace until March 2015.
Penalties may be applied in the following circumstances:
There are some specific mitigating circumstances that can apply and do please contact us if you find yourself being penalised but believe you may have a valid reason to avoid the penalty.
One late submission in a tax year incurs no penalty but each further late submission will be charged as follows.
|Number of employees||Monthly penalty per PAYE scheme|
|1 – 9||£100|
|10 – 49||£200|
|50 – 249||£300|
An additional penalty of 5% of the PAYE and NI that should have been reported can be levied if the submission is over 3 months late.
Also coming into force from 1st October are changes to the national minimum wage. Hourly rates are increasing as per the table below:
|18 – 20||£5.13|
|16 – 17||£3.79|