There are a number of changes to payroll processing which occurred during the month of October, which we have highlighted below.
If you have any queries arising from any of this information, our team of payroll advisors will be very happy to help.
National minimum wage increase from the 1 October
Over 21 – £6.50
18-20 – £5.13
16-17 – £3.79
Apprentice – £2.73
6 October – All employers with 10 or more employees, and all new businesses set up in the 2014-15 tax year must be up to date with their RTI submissions by this date. Prior to 6 April, no data was required, and no penalties were enforced. From 6 October, all FPS and EPS returns for payments from 6 April must be submitted and in order.
6 October – Late submission charge for all businesses with 10 employees or more and all new businesses set up in the 2014-15 tax year comes into force, charged on a sliding scale as a percentage of your expected FPS submission value. There will be no charge for one late submission in a tax year (including tax year end, due on 20 April 2015), but each subsequent late submission will be charged as follows:
|Number of employees||Amount of the monthly filing penalty per PAYE scheme|
|1 – 9*||£100*|
|10 – 49||£200|
|50 – 249||£300|
* This charge will be waived until March 2015
The following daily interest rate charges will be applied to the outstanding monies owed for all businesses:
- 1 – 3 late submissions will be charged as 1% of the late estimated monetary value
- 4 – 6 late submissions will be charged as 2% of the late estimated monetary value
- 7 – 9 late submissions will be charged as 3% of the late estimated monetary value
- 10 or more late submissions will be charged as 4% of the late estimated monetary value
If you have still not paid a monthly or quarterly amount in full, after six months you will have to pay a penalty of 5% of the amounts unpaid. A further penalty of 5% will be charged if you have not paid after 12 months. These penalties may be charged in addition to the penalties for monthly and quarterly payments described in the previous section and apply even where only one payment in the tax year is late.
19 October – Tax payments to the HMRC is due for any PAYE settlement agreements declared for any minor, irregular or impracticable payments made to employees in the 2013-14 tax year where the employer bore the tax liability on the payment. Payment is reference to the PSA agreed by 6th July 2014.
Please do call Helen Miller or Maureen Owens in our Payroll Department if you have any queries.