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RTI Late Filing Penalties from October 2014

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HM Revenue and Customs has announced that they are changing the penalty system for RTI late submissions. At Stipendia, we thought it’d be best to give you the latest information so no one falls into the late submission trap.

The major change employers need to be aware of is that automatic penalties will apply if their RTI submissions are not up-to-date by Sunday 5th October 2014. Furthermore, automatic penalties will still apply if they’re not kept up-to-date after this deadline.

The penalties will be imposed:

  • Where a Full Payment Submission (FPS) is filed late. This is determined by the day the employees are paid or by the last payday in the tax month. The latter is only applicable if the employer qualifies for the concession for some employers with 9 or fewer employees.
  • Where an employees fails to file a nil Employer Payment Summary (EPS) by the 19th day of the following month (for example, the 19th October for the tax month to the 5th October). This is applicable only in a month in which no payments to employees were made.

The monthly penalty imposed by HM Revenue and Customs also depends on how many employees the company has, as shown below. However, the first default each tax year will be ignored.

Number of Employees Monthly Penalty
Less than 10 £100
10 and 49 £200
50 and 249 £300
250 or more £400


Penalty notices will only be issued every 3 months, with the first notice being issued in October 2014. This covers any defaults for the current tax year that were not rectified by Sunday 5th October.

Where a submission is 3 months late, HM Revenue and Customs will additionally be able to impose a 5% supplement on the tax and National Insurance contributions payable. However, this will only be used ‘for the most serious and persistent failures’.

There will be further changes made from April next year, with the existing penalties being made automatic and applied in all cases. These penalties will be between 1% and 5% of the tax due, depending on how many times, in the tax year, the employer pays late.

Key Contact: Lynne Auton
Tel: (0845) 308 2288
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