Tag: FPS

Payroll: annual reporting and tasks

Send your final payroll report

Send your final Full Payment Submission (FPS) on or before your employees’ last payday of the tax year (which ends on 5 April).

Put ‘Yes’ in the ‘Final submission for year’ field (if available) in your payroll software.

If you run more than one payroll under the same PAYE scheme reference (for example for employees you pay weekly and monthly), include the end-of-year information in your last report.

You need to send extra forms if you claimed a National Insurance holiday for new employers.

When to send an Employer Payment Summary (EPS)

You should send your final report in an EPS instead of an FPS if any of the following apply:

  • you forgot to put ‘Yes’ in the ‘Final submission for year’ field in your last FPS
  • your software does not have a ‘Final Submission for year’ field on the FPS
  • you did not pay anyone in the final pay period of the tax year
  • you sent your final FPS early and you did not pay anyone for one or more full tax months in the last tax year

If you’re late sending your final report

From 20 April you can send an FPS to correct your 2021 to 2022 tax year payroll data by giving the year-to-date figures.

‘Week 53’ payments

If you pay your employees weekly, fortnightly or every 4 weeks, you might need to make a ‘week 53’ payment in your final FPS of the year.

Your payroll software will work out ‘week 53’ payments for you.

In the ‘Tax week number’ field of your FPS, put:

  • ‘53’ if you pay your employees weekly
  • ‘54’ if you pay them fortnightly
  • ‘56’ if you pay them every 4 weeks

HMRC will send a P800 form to any employees who owe tax following a ‘week 53’ payment.

More information can be found here

Final Payment Submissions to HMRC

D55F3A85-4C8C-4000-8482-9D1DEE8C5C44It’s time to prepare for making your last Full Payment Submission or Employer Payment Summary of the year

From HMRC
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

Deductions for:

  • 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

What happens if you do not report payroll information on time

D55F3A85-4C8C-4000-8482-9D1DEE8C5C44When 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 Monthly penalty
1 to 9 £100
10 to 49 £200
50 to 249 £300
250 or more £400

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