12 Day of Tax Tips – Day 3
Real time information on payroll have been in place since April 2013 (some since April 2012). A system of penalties are in place but have never been enforced. For people operating payroll with less than 50 employees, those penalties will start in March / April 2015 for missed returns.
The cost of the penalties start at £100 for small businesses per late return, and if the return is more than 3 months late, there is a 5% additional penalty. Of course, there are other penalties if the payment is received late.
As time marches on, smaller businesses will need to comply with the pension auto enrollment rules – so all staff are automatically enrolled into an authorised pension scheme. The more up-to-date payroll information is, the easier it will be to collect the required information for auto enrollment. Should you require more information on this, please contact us and we can talk you through what is required from a business perspective.
When making your payment, you must ensure that the reference number you quote on the payment is for the correct month especially is you are paying outside the expected payment period. So the full reference will be 123PA00123456 add tax year and month, so the January 2015 period payment will have 1510 at the end of the number as January is the 10th payroll month of the year. If payments are not correctly allocated, you could be issued with a fine even through the correct amounts have been paid in total for the year.
Always talk to your accountant before acting on any advice. If you’d like to talk to us about your accounting requirements, please complete the contact form >>>> HERE <<<< and we’ll get in touch.