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RTI nil payment due

RTI nil payment due

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RTI nil payment due

Most of my clients are director run companies with nil tax and ni to pay each month until feb/mar time so I have been submitting FPS submissions for all of them each month. However according to the info HMRC send me it says to send an EPS in if there is no payment due and tells me to fill in the box "no payment due as no employees or subcontractors" which is incorrect as I DO have employees but they haven't reached the threshold yet. Please can anyone advise whether I should be sending in FPS and EPS for months where no payment is due?

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By onicholson
04th Feb 2014 10:52

Payments to employees, not liabilities

An FPS should be sent any time you pay an employee, regardless of thresholds and liabilities. A nil EPS is due when you haven't submitted an FPS for the month, i.e. no employees were paid in the month.

If you've paid an employee and there are no liabilities, send the FPS as normal and HMRC can see that no payment to them is due. You don't need to send the nil EPS.

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By thomas34
04th Feb 2014 11:05

No Payment Due

I agree with the above but sympathise with the OP for their confusion caused by what I consider to be misleading HMRC guidance.

A client brought this to my attention recently upon receipt of a form P30B letter which gives details of how to pay PAYE by bank transfer. The guidance does indeed state that if an employer has no payment to make in a period an EPS should be submitted.

This is in my opinion misleading and incorrect if an FPS has been submitted showing insufficient pay to warrant tax and NI being payable.

Either that or I've made an awful lot of errors since April 2013.

 

 

 

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By Euan MacLennan
04th Feb 2014 11:46

I almost agree

... but if you have one or more employees on the payroll, but do not pay any of them in the month, you can actually file a nil FPS during the month, instead of waiting to the 5th of the following month to file a nil EPS.

I definitely agree that if you have any payments to employees, you must file a FPS and should not file a subsequent EPS to say that no PAYE balance is due to HMRC - that will be obvious from the FPS.

This is using Moneysoft.  I do not know if this facility is available using PAYE Basic Tools.

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By mhtax
04th Feb 2014 14:59

PAYE Basic Tools

I file mnthly FPS for Directors who are paid below limits for any payments to be due. I also file EPS for company where Director does not draw any salary (salary elsewhere)

I have never files a NIL FPS but could try next month if anyone would be interested in the answer?

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By pricegg
04th Feb 2014 15:20

part month NIL return

I have a client with one employee who he pays weekly. He paid him this week (week 44) but the employee is leaving so I've done a P45 etc..etc. That's all fine but for the rest of the month (to 5/3/14) do I submit NIL FPS returns or no returns at all as there's been no pay? I don't think an EPS report would be appropriate as a payment has been made during the month.

Any advice please?

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By sysanguinary
12th Feb 2014 13:17

Issues with EPS

I have a number of clients who are paid regularly. The FPSs are submitted and acknowledged with no issues. However, I have one client at the moment doesn't draw a wage. Using Moneysoft, I submit an EPS on the 5th of the month. EVERY month so far I've received a late notification from HMRC. I try to submit it early, but it gets refused.

 

What now?! I guess I just have to keep following HMRC's rules and keep backups of my actions, so I can appeal any potential fines if or when they happen.

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Euan's picture
By Euan MacLennan
12th Feb 2014 13:33

Issue with your filing date

If you are filing an EPS to say that no payments have been made, Moneysoft will not let you file it until the 6th of the following month (up to the 19th).  If you are succeeding in filing a nil EPS on the 5th, it can only be for the month to the previous 5th and as you are filing after the 19th, it will be late.

Assuming that the client is set up as an employee on the payroll, why don't you file a (nil) FPS during the month up to the 5th?  The FPS will say that your client was not paid in the month and you don't then need to file an EPS.

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By sysanguinary
12th Feb 2014 13:45

Interesting.

Actually, it appears I meant to say I submit the EPS after the 5th of the month.

 

I'll have a look at Moneysoft to see how I go about submitting a nil FPS, as that will certainly make my life (and timings) a little easier.

 

Thanks!

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