New penalty rules for late PAYE returns

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Businesses who file late tax returns will face an escalating penalty based on their size and the number of months the return isn't filed. 

This is one of several changes in effect under the Revenue's new penalties system. It will apply to tax returns up to, and including, 2013/14.

The penalty will be £100 per 50 employees for each month or part of the month the return is outstanding from 20 May 2014 to 19 September 2014.

Also, as part of HMRC's transition to in-year RTI penalties for late and non-filing, it's changing its approach to penalties for late PAYE returns.

When a late return is received, HMRC will issue a revised updated penalty notice showing the correct amount of penalty due.

The ICAEW's Tax Faculty said the new syst...

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About Nick Huber

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I’m a specialist business journalist and have a particular interest in tax and technology. 


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By lisa65
06th Jun 2014 18:08


The penalty will be £100 per 50 employees for each month or part of the month the "returning" is outstanding from 20 May 2014 to 19 September 2014.

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09th Jun 2014 12:37

PAYE Penalties

I understood that all RTI penalties for late returns were suspended until October 2014 -- have I got the wrong end of the stick?


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09th Jun 2014 14:40

PAYE penalties

The above link provides the timetable for penalties published in Feb 2014.

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By ringi
09th Jun 2014 23:17

Why so low.

So for messing up the benefits of a 50, including over and under payments the empoyer is only charged £100.   This is FAR too low.

Just think of the time any employee on universal credit will have to spend on the phone due to their employer filing late!

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11th Jun 2014 09:06

Late filing

Maybe it is time that everybody was responsible for their own Tax returns etc & employers Only Pay out Gross with no deductions for student Loans,Child Benefit, pensions,going to the dentist etc.


The Burden on Employers especially small business is Just Ridiculous & maybe it is time that 

Inland Revenue/Government took responsibility for making wage payments etc & deduction the Gross due by the employee (at no cost). Then they they can charge themselves when they 

get it wrong.

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By ringi
11th Jun 2014 09:29

Or maybe
Each person have one  “gross” bank account (from an approved bank of their choose)All employment income must be paid into that bank accountThe bank must work out the persons employment taxes, student load, count ordered payments etc and then deduct them from each payment into the account.


The employer tells the Inland Revenue what the persons wages are,The Inland Revenue informs the employer within seconds how much to pay the personThe Inland Revenue provides a PDF to the employer to explain the above to the employee.One payment is made by the employer to the Inland Revenue that is then divided up to cover employment taxes, student load, count ordered payments etc

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11th Jun 2014 18:04


Mind you it will take 2 inland revenue staff  for each Taxpayer & still get it wrong

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