HMRC continues risk-based approach to PAYE late filing penalties
HMRC has issued a note to advise employers and agents that it has reviewed its approach to late filing penalties under PAYE.
HMRC will continue to use the risk-based approach for 2017-18, penalising those who persistently pay late and present the greatest risk.
HMRC commented, "This means that late filing penalties will continue to be reviewed on a risk-assessed basis rather than be issued automatically.
"The first penalties for 2017-18 will be issued in September 2017 and whilst this is no change to our policy approach from last year we will be alerting employers to this news via the next Employer Bulletin".
If a FPS (Full Payment Submission) is filed late but within three days of the payment date and there is no pattern of persistent late-filing, HMRC will not levy a penalty. HMRC are keen to stress that this concession is "not an extension to the statutory filing date, which remains unchanged".
Employers should still be filing submissions "on or before" each payment date unless they have a good reason not to do so (see sending an FPS after payday guidance). HMRC promises to monitor and consider penalties for persistent defaulters.
A wider review of penalties after 5 April 2018 is currently taking place and PAYE penalties will be included in this exercise.