It’s time to prepare for making your last Full Payment Submission or Employer Payment Summary of the year
Your last Full Payment Submission (FPS) or Employer Payment Summary (EPS) of the year (up to and including 5 April 2022) needs to include an indicator that you are making the final submission. This tells us you have sent us everything you expected to send and we can finalise our records for you and your employees.
Some commercial payroll software will not let you put the indicator on an FPS. If that’s the case, send your last FPS and then send an EPS with the indicator ticked. You can also send an EPS with the indicator ticked if you forgot to put the indicator on your last FPS submission for the tax year.
You also need to prepare to give your employees a P60 if they are in your employment on 5 April 2022. You have got until 31 May 2022 to do this.
If you are not going to pay anyone again this tax year, remember to send an EPS with the indicator ticked to show you did not pay anyone in the final pay period and it is the final submission. You have until 19 April 2022 to do this, but you will get a message from the Generic Notification Service if you file it after 11 April 2022.
Student and postgraduate loans: updated thresholds and rates from 6 April 2022
The student and postgraduate loans thresholds and rates are as follows:
Plan 1 ― £20,195
Plan 2 ― £27,295
Plan 4 ― £25,375
Postgraduate loan ― £21,000
- plans 1, 2 and 4 remain at 9% for any earnings above the respective thresholds
- postgraduate loans remain at 6% for any earnings above the respective thresholds
When penalties are charged
You can get a penalty if:
HMRC will not charge a penalty if:
- your FPS is late but all reported payments on the FPS are within 3 days of your employees’ payday, however employers who regularly file after the payment date but within 3 days may be contacted or considered for a penalty
- you’re a new employer and you sent your first FPS within 30 days of paying an employee
- it’s your first failure in the tax year to send a report on time (this does not apply to employers who register with HMRC as an annual scheme)
How much you pay
What you pay depends on how many employees you have.
|Number of employees
|1 to 9
|10 to 49
|50 to 249
|250 or more
If you run more than one PAYE scheme, you can be charged penalties for each.
How we estimate what you owe
HMRC may raise a specified charge based on an estimate of how much we think you should pay if you do not:
- submit your FPS on time
- tell HMRC, by sending an EPS, that you have not paid any employees
This is based on your previous PAYE payment and filing history. You’ll be able to see any specified charge by looking at your PAYE account online.
A specified charge does not replace the need for you to send your FPS or EPS. Only submitting the missing FPS or EPS for each month will:
- replace the charges with the amount that is due for each month
- support an appeal you make against a late filing penalty
If you send updated year-to-date figures in your next FPS instead, the specified charges will remain in place. However, your accounting record will be adjusted to reflect the year-to-date figures given in the later month.
If you get a penalty
HMRC sends penalty notices every quarter. A notice will include:
If you pay the penalty within 30 days of getting the notice you will not be charged interest.
You can appeal if you think:
- the penalty is not due
- the amount of the penalty is wrong
- you had a reasonable excuse for sending your reports late
Reasons you can give for grounds of appeal are:
- data on the returns was incorrect
- death or bereavement
- filing expectation incorrect
- filed on time
- fire, flood or natural disaster
- ill health
- IT difficulty
- missed correction or easement
- no longer have any employees
- no payments to employees
- theft or crime
- other – only use this option if your reason for appeal does not fall into any of the categories in the online system
More information can be found here
You can make a claim for the Employment Allowance up to 4 years after the end of the tax year in which the allowance applies. For example, if you want to make a claim for the allowance for the tax year 2015 to 2016 (that tax year ends on the 5 April 2016), you must make your claim by no later than the 5 April 2020.
You will need a separate Employment Payment Summary (EPS) for each year’s claim when claiming for any tax years that have now ended. You don’t need to send previously reported EPS figures, such as statutory payments.
If you send your claim one year after the tax year has ended, your claim will continue into the current tax year, unless you already have a claim for the Employment Allowance in place that year. If you have paid your PAYE up to date, HMRC will set any Employment Allowance award against your future or existing PAYE liabilities, unless you ask them to refund the amount.
Further information and details can be found here