Guidance

What happens if you do not report payroll information on time

Information for employers about late or non-filing PAYE penalties, specified charges, inaccurate reports and how to avoid penalties in future.

When penalties are charged

You can get a penalty if:

HMRC will not charge a penalty if:

  • your FPS is late but all reported payments on the FPS are within 3 days of your employees’ payday (this applies from 6 March 2015 to 5 April 2019), however employers who regularly file after the payment date but within 3 days may be contacted or considered for a penalty
  • you’re a new employer and you sent your first FPS within 30 days of paying an employee
  • it’s your first failure in the tax year to send a report on time (this does not apply to employers who register with HMRC as an annual scheme)

How much you pay

What you pay depends on how many employees you have.

Number of employees Monthly penalty
1 to 9 £100
10 to 49 £200
50 to 249 £300
250 or more £400

If you run more than one PAYE scheme, you can be charged penalties for each.

How we estimate what you owe

HMRC may raise a specified charge based on an estimate of how much we think you should pay if:

  • you do not submit your FPS on time
  • you do not tell HMRC by sending an EPS that you have not paid any employees

This is based on your previous PAYE payment and filing history. You’ll be able to see any specified charge by looking at your PAYE account online.

A specified charge does not replace the need for you to send your FPS or EPS. Only submitting the missing FPS or EPS for each month will:

  • replace the charges with the amount that is due for each month
  • support an appeal you make against a late filing penalty

If you send updated year-to-date figures in your next FPS instead, the specified charges will remain in place. However, your accounting record will be adjusted to reflect the year-to-date figures given in the later month.

If you get a penalty

HMRC sends penalty notices quarterly. A notice will include:

If you pay the penalty within 30 days of getting the notice you’ll not be charged interest.

You can appeal if you think:

  • the penalty is not due
  • the amount of the penalty is wrong
  • you had a reasonable excuse for sending your reports late

Reasons you can give for grounds of appeal are:

  • data on the returns was incorrect
  • death or bereavement
  • filing expectation incorrect
  • filed on time
  • fire, flood or natural disaster
  • ill health
  • IT difficulty
  • missed correction/easement
  • no longer have any employees
  • no payments to employees
  • theft or crime
  • other - only use this option if your reason for appeal does not fall into any of the above categories in the online system

You can appeal online against a filing penalty using HMRC’s Online Service. In some cases, HMRC will accept and settle the appeal automatically.

There is no print function in the online appeal facility. Take a screen print of the appeal confirmation screen for your records if you want a copy.

You can also send your appeal in writing to:

National Insurance Contributions and Employers Office
HM Revenue and Customs
BX9 1BX

The notice of penalty assessment will contain a ‘unique ID’ for each penalty shown on the notice. You must include the unique ID to identify which penalty you wish to appeal against.

Inaccurate reports

Where HMRC discovers careless or deliberate errors, the penalties that could apply will be based on the behaviour that led to the error and the amount of potential lost revenue for that return.

Errors that arise despite taking reasonable care attract no penalty. Penalties for errors due to failure to take reasonable care can be reduced to zero with full and unprompted disclosure to HMRC.

You can read the penalties for inaccuracies in returns and documents factsheet for more information.

Published 26 August 2014
Last updated 2 November 2018 + show all updates
  1. Guidance on how much you pay if you do not report payroll information on time has been updated.
  2. The guide has been updated to reflect the 3 day easement being extended.
  3. The section 'When penalties are charged' has been updated to show that the Full Payment Submission 3 day easement has been extended to 5 April 2018.
  4. The sections 'If you get a penalty' and 'Estimating what you owe' have been updated.
  5. The temporary relaxation reason code E was removed from 6 April 2016.
  6. HMRC's electronic appeals system has been updated to allow employers to appeal against a specific penalty raised for 2014-15.
  7. From 27 April 2015 the address to send written appeals to has changed.
  8. First published.