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- HMRC have confirmed PAYE late filing penalties will continue to be reviewed on a risk-assessed basis for the 2018/19 tax year rather than be issued automatically:
- this will include continuing to not charge penalties automatically if a FPS is filed late but within 3 days of the payment date and there is no pattern of persistent late-filing.
- The first penalties for the tax year beginning 6 April 2018 will be issued in September 2018.
- HMRC will continue to review this approach after 5 April 2019.
- Generic Notification Service (GNS) electronic warning messages should not be ignored as they give you a chance to review your submission process to ensure that things are correct in the future bearing in mind the risk based approach to penalties. You can check your messages by:
- logging into PAYE Online and selecting the generic notifications from within the “Notice summary” section.
- using the PAYE Desktop Viewer.
- using your commercial software; check your software is compatible with accessing GNS messages.
- accessing your Business Tax Account and using the ‘messages’ link.
- Where an employee works intermittently and is not paid on a regular basis but their contract continues, the Irregular Employment Payment Pattern indicator should be selected on each Full Payment Submission (FPS) completed for that individual.
- If you have to make a one off payment to an employee you should enter ‘IO’ in the ‘Pay Frequency’ field.
- If your employees are normally paid on a regular payment pattern eg. weekly, monthly, annually you should treat these as regular payment patterns and the appropriate code (see the HMRC bulletin for the codes) should be recorded in the ‘Pay Frequency’ field.
- You should only enter irregular (IR) in the ‘Pay Frequency’ field if your normal payment pattern is not one which fits into a regular payment pattern.
- When completing the new starter declaration on your payroll it is important that if you enter your employee’s post code, you ensure that it is correct. An incorrect post code could result in correspondence being issued to the wrong address and may also affect the DWPs ability to issue any Universal Credits due and any correspondence to claimants.
- The PSA1 form that employers complete to submit PAYE Settlement Agreements (PSAs) will be changing for the 2018 to 2019 tax year to incorporate the rates and threshold changes for Scottish Income Tax. When completing a PSA1 form for the 2018 to 2019 tax year you will be asked whether the Expense or Benefit is for a Rest of the UK (rUK) taxpayer or a Scottish taxpayer.
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