Employers reminded about the change in rules regarding PAYE

Businesses are reminded that they will no longer be automatically penalised for failing to file PAYE information under new changes to the legislation.

Under the new rules HM Revenue & Customs (HMRC) has said that they will not impose PAYE filing penalties for short delays of up to three days and that they will now review late payment penalties on a risk-assessed basis, rather than issue automatic on the spot fines.

Deadlines for businesses will remain the same and they will still be expected to file on, or before, each payment date. The new rules will come into effect from 6 March 2015 and are seen as a more lenient approach than that held in the past by the department.

This will be a welcome break to businesses who have been worrying about potential penalties following the introduction of the new scheme.

This leniency marks a significant change in HMRC’s approach to PAYE penalties, but businesses should still be mindful of their requirement to file information within their deadline.

Those who have already received an in-year late filing penalty for period 6 October 2014 until 5 January 2015 and were three days late or less should file an appeal immediately as they may be entitled to a refund.

HMRC will also be closing around 15,000 PAYE schemes which have not filed a report since April 2013 and which appeared to have ceased. Those schemes affected will be contacted prior to their closure on 6 March by HMRC and given advice about the changes and the impact it will have on their business.

For further details please contact Lorraine Wilkinson at the office.