late RTI submission and NI consequences

late RTI submission and NI consequences

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A client employing three staff usually pays wages monthly at the end of each calendar month. At the end of January they had cash flow issues and couldn't pay the January wages until now. Apparently, one employee was paid on 07 Feb, but I have only just found this out, one is being paid tomorrow and one is being paid January's wages at the end of February with February's wages. Nothing has been submitted to HMRC under RTI since the end of December. I am not sure what to submit now as won't the employees suffer from additional NI if two months wages are put through during February. It doesn't seem right that the employees should suffer for the cash flow issues of the business, or am I wrong in thinking this? Also, does a late submission even matter as there are no penalties yet, if we imagine they were paid on 31 January when they were entitled to the wages? Any help gratefully received as I have not been able to get through on the employer helpline.

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Euan's picture
By Euan MacLennan
19th Feb 2015 15:56

Submit a late FPS for January

Although an FPS is due "on or before" the date of payment, that date may may not be the actual date of payment, but the date on which the employees became entitled to the payment, if earlier, which would have been 31 January.

So, run the payroll as January and submit a late FPS now.  As you say, there are no penalties yet.

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