HMRC applies penalties where employers fail to meet their RTI filing and payment obligations. So, late filing penalties apply to each PAYE scheme, with the size of the penalty based on the number of employees in the scheme. Monthly penalties of between £100 and £400 may be applied to micro, small, medium and large employers as shown below:
- 1-9 employees – £100
- 10-49 employees – £200
- 50-249 employees – £300 and
- 250 or more employees – £400
Regardless of the number of returns submitted late in the month, each scheme is subject to only one late filing penalty for each month. There will be one unpenalised default each year with all subsequent defaults attracting a penalty. HMRC have confirmed that, they will not issue late filing penalties automatically when a deadline is missed. Instead they will ‘take a more proportionate approach and concentrate on the more serious defaults on a risk-assessed basis.’
Additionally, HMRC charge daily interest too. Interest is charged on all unpaid amounts from the due and payable date to the date of payment. They may also charge penalties to employers who fail to pay their PAYE liabilities on time. These penalties are ‘risk assessed’ and range between 1% and 4% of the amounts paid late. The first late payment will not attract a penalty.