On either the day or the day before employees are paid, employers must always send their PAYE reports to HMRC. The full payment submission (FPS) report will then set out what has been paid and any deductions made.
Late submissions do come alongside repercussions. An FPS report that is three days late will result in an education letter from HMRC, and should this happen again, a penalty may be served.
Can Reports Be Submitted In Advance To Avoid Penalties?
As typical workforces are paid the same amount every month, it can be tempting to prepare and submit FPS reports in advance. While convenient, this can cause issues.
The computers used by HMRC are not programmed to read the dates on FPS reports; they only register whether the correct number of FPS reports have been submitted during each payroll period.
For instance, suppose the computer expects to receive 12 FPS reports to cover the monthly payroll for the appropriate months. Should additional FPS reports are submitted, HMRC will not attempt to match these reports with the correct month. If they do not receive a report during the period it relates to or receive it shortly afterwards, they will assume that the report is missing and, therefore, issue a penalty.
It is important to note that software approved by HMRC (i.e. PAYE Basic Tools) does allow employers to submit RTI returns early. There are no laws that prevent you from being organised and submitting reports early; however, you will just need to keep the potential penalties in mind.
If you receive a penalty for submitting your FPS report late, but you believe this to be incorrect, please contact us without delay. We can help you to appeal against any false penalties.