There are a number of important changes to payroll processing occurring during the month of October, which we have highlighted below.

The National Minimum Wage increases from the 1st of October 2014

Over 21 – £6.50
18 – 20 – £5.13
16 – 17 – £3.79
Apprentice – £2.73

From the 6th of October – All employers with 10 or more employees, and all new businesses set up in the 2014-15 tax year must be up to date with their RTI submissions by this date. Prior to 6th April, no data was required, and no penalties were enforced. From 6th October, all FPS and EPS returns for payments from 6th April must be submitted and in order.

From the 6th of October – Late submission charge for all businesses with 10 employees or more and all new businesses set up in the 2014-15 tax year comes into force, charged on a sliding scale as a percentage of your expected FPS submission value. There will be no charge for one late submission in a tax year (including tax year end, due on 20th April 2015), but each subsequent late submission will be charged as follows:

Number of employees  Amount of the monthly filing penalty per PAYE scheme
1 – 9*                               £100*
10 – 49                              £200
50 – 249                            £300
250 +                                 £400

*This charge will be waived until March 2015

The Following daily interest rate charges will be applied to the outstanding monies owed for all businesses:

1 – 3 late submissions will be charged as 1% of the late estimated monetary value

4 – 6 late submissions will be charged as 2% of the late estimated monetary value

7 – 9 late submissions will be charged as 3% of the late estimated monetary value

10 or more late submissions will be charged as 4% of the late estimated monetary value

If you have still not paid a monthly or quarterly amount in full, after six months you will have to pay a penalty of 5% of the amounts unpaid. A further penalty of 5% will be charged if you have not paid after 12 months. These penalties may be charged in addition to the penalties for monthly and quarterly payments described in the previous section and apply even where only one payment in the tax year is late.

Standard charges for late, incomplete or incorrect submissions of tax year end information remain, and are open to all. Further information will be supplied in the tax year-end guide.

19th October – Tax payments to the HMRC is due for any PAYE settlement agreements declared for any minor, irregular or impracticable payments made to employees in the 2013-14 tax year where the employer bore the tax liability on the payment. Payment is reference to the PSA agreed by 6th July 2014.

If you have any queries arising from any of this information, our Support Team will be very happy to help on 0844 804 2005.