HMRC are reminding employers that they need to pay their PAYE liabilities ‘on time and in full’. At Harris & Co chartered accountants in Northampton we would also like remind those who are still getting used to reporting under RTI of the deadlines they are required to meet.
Our Accountancy Services Can Help You To Stay Compliant
The due dates for payment remain unchanged. Cheque payments therefore need to be received by the 19th of the month following the end of the tax month of deduction and cleared electronic payments by the 22nd.
Under RTI the amount of PAYE payment due is the total amount shown on the Full Payment Submission(s) (FPS) for a tax month, including any corrections or adjustments submitted on or before the 19th of the following month. The total amount will be less the amount shown on any Employer Payment Summary (EPS), submitted on or before the 19th of the next month. Therefore your payment will include your FPS plus amendments, and any EPS received by the 19th.
Where amended or additional EPS or FPS returns are made after the 19th of the month, these will be reflected in the payment due for the following period.
HMRC also advise that employers should also use an EPS to tell them that there is no FPS to send (where no employees have been paid in the month) as, without it, HMRC will estimate what they believe is due and expect the employer to pay it in full. This estimate is known as the ‘specified charge’.
A specified charge will be issued for each month that the employer fails to report. An employer is still required to send a FPS, as this needs to be sent to report the actual deductions that the employer has made. Specified charges represent what HMRC believes the employer owes, and is calculated based on their previous history of PAYE payment and filing. If the specific charge is less than any actual deductions the employer has made, they will need to pay the additional amount as well.
Where an employer submits an FPS or EPS within seven days of the specified charge, these submissions will overwrite the specified charge. By doing this they can pay their reported amount, as opposed to the specified amount.
Employers are still required to send a monthly FPS and/or EPS to HMRC even if they pay quarterly. If a monthly report is not sent, a monthly specified charge will also be created for them. However, if the employer is a quarterly payer, they are still only required to pay in full on a quarterly basis, not a monthly basis.
Employers can check their 2013/14 PAYE payment position by using the online PAYE Liabilities & Payments Viewer to confirm the real time submissions that HMRC have received and to check what is owed and been paid. This viewer will also include any specified charges.
Get Help With Your PAYE Submission At Harris & Co Chartered Accountants
If you are struggling to understand the new RTI reporting system, our accountancy services can help. Get in touch with our team of experts at Harris & Co chartered accountants and we can help you to complete your PAYE payment on time, and send in your FPS and EPS forms.
For more information about our accountancy services, get in touch by calling 01604 660661 or email email@example.com