Payroll Legislation Update-March 2015

PAYROLL LEGISLATION UPDATE
EFFECTIVE 6 MARCH 2015

Penalties will be issued for late filing of payroll from 6 March 2015

You will get a penalty if:
• your Full Payment Submission (FPS) is late
• you don’t send the expected number of FPSs
• you don’t send an Employer Payment Summary (EPS) when there are no payment to employees in a tax month.

Penalties start at £100 per month!

HMRC expects your Full Payment Submission (FPS) to be filed:
• at the time the payment is made, or, if earlier
• at the time the employee becomes entitled to payment

For example

Your usual payday is 25th of the month, and one month you pay your employees on 26th.
• Your FPS must still be dated 25th and lodged on or before 25th. If you date it for 26th and send it in on 26th, it is considered late and will attract a penalty even if that’s the date you paid your employees.
• Your usual payment is 25th of the month, and one month you pay on 24th. Your FPS must be dated 24th and lodged on or before 24th

There is an easement of these rules if your usual pay day falls on a non- banking day.

For example
• Your usual payday is 28th of the month, which in February is a Saturday, so you pay your employees on Friday 27th or Monday 2nd. The FPS can still be dated 28th.

AVOID PENALTIES BY CHOOSING A REGULAR PAY DAY AND STICKING TO IT.