HMRC are reminding employers that they need to pay their PAYE liabilities ‘on time and in full’ although they are mindful that employers are still getting used to reporting under RTI.
The due dates for payment remain unchanged. Cheque payments therefore need to be received by the 19th of the month following the end of the tax month of deduction and cleared electronic payments by the 22nd.
Under RTI HMRC are aware of the amount of PAYE payment due as this is the:
- total amount shown on the Full Payment Submission(s) (FPS) for a tax month, including any corrections or adjustments submitted on or before the 19th of the following month
- less the amount shown on any Employer Payment Summary (EPS), also submitted on or before the 19th of the following month.
Where amended or additional EPS or FPS returns are made after the 19th of the month these will be reflected in the payment due for the following period.
HMRC also advise that employers should also use an EPS to tell them that there is no FPS to send (where no employees have been paid in the month) as, without it, HMRC will estimate what they believe is due and expect the employer to pay it in full. This estimate is known as the ‘specified charge’.
A specified charge will be issued for each month that the employer fails to report. A specified charge does not replace the need for an employer to send a FPS, as this still needs to be sent to report the actual deductions the employer has made.
Where an employer submits an FPS or EPS within seven days of the specified charge, these submissions will overwrite the specified charge. This means that an employer can pay the reported amount rather than the specified charge.
Employers can check their 2013/14 PAYE payment position by using the online PAYE Liabilities & Payments Viewer to confirm the real time submissions that HMRC have received and to check what is owed and been paid. This viewer will also include any specified charges.
Please do get in touch if you have any queries on payroll issues.