Don’t pay the penalty for missed payroll reporting

an image of a business owner working out the company payroll to avoid late payroll penalty

It’s easy to overlook the importance of correctly filing payroll reports on time, but it could be more costly than you think if you don’t. According to recent figures, HMRC has dished out more than £75 million of payroll penalties to UK businesses for errant or absent payroll reporting since 2020. If you’re running a business and haven’t been taking payroll deadlines seriously, now’s the time to take action to ensure you stay compliant and penalty-free.

The dangers of late payroll reporting


Missing or filing incorrect payroll reports can result in hefty fines and penalties, courtesy of HMRC. If you fail to report your employees’ payroll information correctly, your business could face the following consequences:

  • Penalties for late, incorrect or absent returns
  • Costly penalties for late payments
  • An increased risk of HMRC investigations


A payroll late filing penalty can be extremely costly and is likely to put a strain on the finances of any business. It’s not worth the risk – it’s always better to be safe than sorry!

What are the common mistakes that lead to payroll penalties?


Many business owners and payroll staff can find themselves in hot water with HMRC if they don’t comply with the regulations. Some common mistakes to avoid include:

  • Failing to report changes in payroll information on time.
  • Not filing a return within the required deadlines.
  • Submitting incorrect or incomplete employee data.
  • Paying employees late without making deductions.
  • Not submitting the correct amount of PAYE tax and NI.


These can all lead to costly payroll penalties, so it’s important to stay on top of any changes in payroll regulations and make sure you file returns accurately and on time.

How have UK businesses been affected by payroll reporting fines?


The number of fines imposed by HMRC for payroll errors and late filing has skyrocketed over the last few years. As we mentioned earlier, British businesses that repeatedly fail to discharge their payroll reporting responsibilities have been slapped with more than £75 million in fines over the last three years, with more than a quarter (27%) of those charges reportedly incurred during the 2022-23 financial year alone.

It’s clear that late payroll reporting is a serious issue and one that can have serious financial implications for business owners. With that in mind, it’s vitally important to stay informed of your responsibilities and seek expert advice to ensure you don’t fall foul of HMRC regulations or incur a hefty late payroll penalty as a result.

What are the legal and regulatory requirements for payroll reporting in the UK?


All organisations with employees in the UK have to comply with HMRC regulations when it comes to payroll reporting. This includes regularly submitting a return of employee earnings, deductions and National Insurance contributions, as well as any changes to employee details. It’s essential that you keep on top of any changes in regulations and make sure you file returns accurately and on time.

How can IN Accountancy assist businesses in payroll reporting and compliance?


The best way to avoid the risk of a late payroll penalty is to make sure you have an experienced and reliable payroll provider on your side. At IN Accountancy, we understand just how important it is to stay compliant with HMRC regulations and provide a tailored service that ensures your payroll data is accurate and up-to-date.

Our team of experts will ensure that:

  • Your payroll is kept up to date.
  • You have all the necessary information for filing returns.
  • Your processes are efficient and accurate.
  • All HMRC deadlines are met, so you don’t miss out on important payments.


We offer a range of services tailored to your business needs that will ensure your payroll data is compliant and penalty-free. We also provide support with payroll processing to help you to stay up-to-date with HMRC regulations. So, if you’re looking for an experienced and reliable partner to manage your payroll, get in touch.

What are the benefits of outsourcing payroll reporting to IN Accountancy?


At IN Accountancy, we can provide tailored and comprehensive payroll services to help keep your business financially secure. By outsourcing your payroll processing and reporting to our limited company accountants, you can benefit from:

  • Professional advice on filing returns.
  • An improved compliance rating from HMRC.
  • More accurate payroll data.
  • Reduced risk of incurring penalties.
  • Experienced and reliable support from our team of experts.


Don’t put your business at financial risk. Take action today by enlisting the help of our experienced and reliable payroll professionals. Contact IN Accountancy today on 0161 456 9666 or email to discuss how we can help you keep your business compliant, penalty-free, and financially secure.

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