Small Business Tax Advice: HMRC To Begin Issuing Penalties For FPS And EPS Late Payments.

As many accountants suspected, the transition to Real Time Information reporting has proved to be tricky for a good number of employers.

The change from year-end reporting to real time reporting was so fundamental that it was inevitable that those employers who were not taking expert accountancy advice would struggle to fully comply with all the new rules and regulations.

HMRC promised to come down hard on any business that failed to comply with the regulations, and it would seem that it has every intention of abiding by that promise.

HM Revenue and Customs has confirmed it will begin issuing penalty letters from Tuesday 25 June, 2013, to employers who have yet to submit a final Full Payment Submission (FPS) or Employer Payment Summary (EPS) for 2012-13. These penalties for employers that took part in the Real Time Information (RTI) pilot are the equivalent of 2012-13 end-of-year penalty notifications. In order to ensure that employers who took part in the pilot are treated in the same manner as non-pilot employers, penalties were applied from 19 May 2013. HMRC are warning pilot employers who haven’t filed returns for the 2012-13 tax year to do so as soon as possible to prevent incurring additional penalties.

Because the deadline of 19 April 2013 has passed for submitting a final FPS, RTI pilot employers should instead submit an Earlier Year Update (EYU) to make their final 2012-13 report. Employers completing their EPS should ensure they complete and answer the end-of-year declarations and questions. In the event there are any 2012-13 statutory payments to recover, employers should also submit an EPS as the EYU won’t pick up any recovery corrections that need making.

Although HMRC has issued a full guide on PAYE end-of-year tasks for real time pilot employers and outlined what information is needed and which deadlines must be met, many small businesses are still struggling to get a proper grip of the new system. That’s where expert accountancy advice can help.

Steven Glicher accountants can help employers throughout the year, calculating employees’ net pay and provide you with payslips to pass on to staff.

We can calculate the tax and National Insurance deductions and advise you during periods of sickness, paternity or maternity leave. We can also help you to keep track of staff holiday entitlement and can file all the starters and leavers forms on your behalf.

Steven Glicher accountants can help you manage the migration to RTI and all the reporting changes that it involves, leaving you to concentrate on managing and growing your business.

If you would like clarification on this matter or would like to discuss any other issues relating to small business tax advice, then give Steven Glicher accountants a ring on 0161 485 8007.

News / Blog

13th
December

Autumn Budget 2017 – Business Tax Implications

Since the budget statement in November, a number of further details have been released. This week, we have a look…

5th
December

Review of the Budget – 2 Weeks On

It’s been two weeks since the Autumn Budget. Our initial reactions remain the same, but with more information published in…

30th
November

Cloud Accounting – Soon To Be A Necessity For All Businesses

There are a number of implications for Stockport small businesses that came out of last week’s budget. We will be…

22nd
November

Autumn Budget 2017 – Initial Reactions for Small Business

The Autumn budget is out. The Chancellor of the Exchequer, Philip Hammond MP has delivered his Autumn Budget 2017 speech…