A new client has just told me he started employing two people back in February 2020. We'd originally set up the pay scheme starting September 2020, based on the client telling us he was starting to pay from September, but only later discovered he'd been paying since February. The amounts are above the LEL, but no tax or NI is actually due, so he should have registered for PAYE and filed RTI, but no loss to the exchequer.
I am trying to determine what penalties are likely to be due. Would it really be a case of £100 per month for each missed filing.
So February 7 months late = £700
March 6 months late = £600
Total £2,800 penalties less £100 for first late, so £2,700. This seems excessive, but I appreciate there is no logic in tax.
Has anyone been in this position before?