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HMRC internal manual

Compliance Handbook

HM Revenue & Customs
, see all updates

Penalties for failure to file on time: types of penalties to file on time: PAYE Real Time Information returns: new employers

New employers will not be charged a penalty for failing to file on time where they fail to file a return on or before a filing date in the ‘initial period’.

The ‘initial period’ means the period which

  • begins with the day in the first tax year on which the employer is first required to make a return, and
  • is for a period that is specified in regulations made by the commissioners.

Regulations provide that the initial period runs for 30 days.


B Limited is a new employer and pays its employees on 19 June 2014, so is due to file its first PAYE Real Time Information return on 19 June 2014. B Limited files its return on 1 July 2014.

B Limited would not be charged a fixed penalty for tax month ended 5 July 2014 because the return was filed within 30 days of the date it first paid an employee (the due date for its first return).

This exemption for new employers does not affect the employer’s entitlement to not incur a penalty for the first period in which they fails to file a return on time in each tax year, see CH62840.


Using the facts in the above example, if B Limited was late filing one or more returns during tax month ended 5 August 2014 the failure would not be penalised because it is the first tax year during which B Limited filed a late return (paragraph 6C(4)).

FA09/SCH55/PARAS 6C(3)