Generally, HMRC will not charge you a fine without notice unless you have missed certain notices.
Our tax experts will combine a variety of experiences to interpret the penalty warning notices your business receives.
This will help you or your business understand what to do when you receive a fine warning and how to avoid further fines.
Late filing notice
Please note if you receive a message from HMRC with Full Payment Submission (FPS) has been sent late:
- Check the payment date of your FPSs, at least one day before the date you submitted.
- When you have any reason to delay the payment of FPSs, you must fill in the reason for the delay report on the next FPSs (see the official government website for details )
Non filing notice
You may receive this message when HMRC has not received the corresponding number of FPSs, at which point you need to check:
- Check your tax period for missing FPSs to submit
- When you find that there are still FPSs missing after the submission date, you need to submit and submit a reason for the delay after that.
- Tell HMRC if your business changes and you are no longer an employer
- Please tell HMRC when you have modified the staff pay interval (change from weekly to monthly).
Late payment notice
When HMRC has not received your full payment by the deadline, you will receive notice and check yourself:
- Check again the total payout on your FPSs
- Pay outstanding balances in a timely manner
- Check the payment history and find out why the amounts do not match
- Correct payroll errors in a timely manner and keep records accurate
Late payment penalties
Typically, fines are received when a business does not respond to a notification or does not send a report on time.
Please note that some special reasons businesses will not be fined, please refer to GOV.UK.
Once the business receives the list of fines, the monthly fines amount will be related to the employee:
HMRC will charge interest to the business when it is not paid in full within 30 days of receipt of the penalty information.
Please refer to our previous article for specific interest calculation.
Since any interest rates are updated, you should try clicking on the government website for real-time rates.
