Our Payroll Manager
Kelly Cummings, our Payroll Manager

Kelly Cummings runs our Payroll Bureau service to clients and prepares payrolls for the smallest clients with 1 employee to businesses that have up to 50 employees.

She was asked to write this blog to explain how the changes in legislation and HMRC attitude towards penalties is becoming an important issue for clients to consider.

What do you know about auto-enrolment? 

In 2008, the government introduced legislation to address the issue that people in the UK are not saving enough for their retirement. As a result, auto-enrolment is now being implemented throughout the UK.

As from April 2014, companies with less than 250 employees will need a workplace pension scheme that meets qualifying standards set out by the government.  By 2018, every employer will need a qualifying scheme.  The Pensions Regulator will fine any organisation that doesn’t comply up to £2,500 per day!  You may have heard about ‘opting out’ however, you need a scheme in place before your employees have the choice to opt out.

Each employer, has been given a date (referred to as their staging date) by which time they will need to have in place a qualifying workplace pension scheme, which they will automatically enrol all of their eligible employees into. Employers will have to make contributions on their employees behalf and tell employees about the implications of auto-enrolment and how it will affect them. It is recommended that you start planning for auto-enrolment 12 months before your staging date, as it easy to underestimate the work involved and time it will all take.

Please get in touch if you have any queries that we may be able to help you with.  

RTI Late filing penalties

Late filing penalties have been introduced s from the 2014/15 year; however these will only apply for returns filed late on or after 6 October 2014.   The penalties will reflect the number of employees in the PAYE scheme.

No. employees

Monthly filing penalty per PAYE scheme

1-9

£100

10-49

£200

50-249

£300

250 plus

£400

One late filing penalty will apply each month or quarter regardless of the number of RTI returns due.  Employers will be allowed one unpenalised default each tax year, with all subsequent late submissions attracting a penalty.  There is no unpenalised default for annual schemes.  Penalties will be charged quarterly, with HMRC sending these out in July, October, January and April.

PAYE/NI Late Payment Penalties

From April 2014, HMRC are imposing penalties on late payment of PAYE/NI.  The penalties are based on a percentage of the amount paid late, starting at 1% and rising to 4%, depending on the number of late payments in a year.  Where the payment is still not made after 6 and 12 months, there are also 5% penalties.  There is no penalty for being late once in a tax year, if not more than 6 months late.

For more information contact Kelly Cummings on 01531 631500.