Payroll Question

MinhazMoosa

Hello Guys,

My boss has just asked me a question I can't answer! I need your help!

A company has been operating for three months, they have been making salary payments for three months but do not have a PAYE scheme in place and have not been complying with the HMRC RTI rules regarding submissions.

Not sure whether its lots of employees or just director(s) but assuming they are above NI LEL.

If they set up a scheme, would they be fined 3 months late submission? (only 2 fines as the first time is not fined)

what would be the best thing to do in this scenario?

Thanks

Gem7321

See here https://www.gov.uk/guidance/what-happens-if-you-dont-report-payroll-information-on-time for information on RTI penalties.

MinhazMoosa

Thanks for that.

So in the worst scenario we are looking at 3 months no fps submission penalty = £300 + 5% of the tax and NI that should have been reported?

I'm just looking for a creative way around it. Especially since there is no PAYE scheme set up and HMRC would not apply any penalty until a scheme is set up and there has been no fps.

Thanks