HMRC Penalty

Starting 6th October 2014 the HMRC are introducing penalties for late submissions of your FPS (Full Payment Submission).

The HMRC will fine you for each late submission – this will be billed quarterly. HMRC reserve the right to fine for resubmission of both your FPS and EPS (Employer Payment Summary)

Your FPS must be sent on or before whatever date is printed on your payslip. If you submit after this point from 6th October 2014 you will get a fine unless you include a Reason for Late Reporting. These will be issued quarterly to employers.

 No of employees

 Monthly penalty







250 +


Checking your payroll date:
Your payroll date should be when the employee receives the money in their pocket. This can be when the employee receives the money in the bank, a cheque is issued or when cash is paid.

The payroll date is not when the employees earned the money, for example: if you pay your employees this Friday for work completed the previous week your pay date should be this Friday not the end of the previous week.

Correcting errors:
Best practice is to make the correction in the next pay period. Once your FPS has been sent (unless advised by support) you should not be recalculating your payroll and submitting another FPS. For example, if you have missed out a bonus payment or some overtime you may wish to give the employee a loan as an estimated amount them pay the amount to the employee in the next payroll run gross then deduct the amount already paid as a loan.

Employee is owed £100 overtime.
I pay the employee a £68 Loan (I estimate the amount of tax (20%) & National Insurance (12%))

In the next payroll I pay the employee £100 gross (Subject to both tax and NI)
I also deduct £68 net (After Tax & NI)

Details can be found at

NOTE: From April 2015 if you are late with your payment to HMRC there will be an automatic penalty

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