PAYE penalties for the tax years to April 2014

You may have to pay a penalty if you:

  • don't file your returns on time
  • send inaccurate returns
  • don't pay your PAYE and National Insurance contributions (NICs) on time and in full

This guide will explain the different penalties HM Revenue & Customs (HMRC) may charge.

On this page:

Penalties if you operated PAYE in real time in the tax year to 5 April 2014

Late filing of FPS

No penalty will be charged for late filing if the final Full Payment Submission (FPS) -or Employer Payment Summary (EPS) - is submitted by 19 April 2014. You cannot submit an FPS after 19 April for the previous year.

On your final FPS (or EPS) for the year make sure you:

  • indicate it is your 'Final submission for the tax year'
  • answer the end-of-year questions and declaration

After 19 April 2014, you can submit an Earlier Year Update by 19 May 2014 and avoid a penalty.

If you submitted your return after the 19 May 2014 deadline, a penalty may be charged.


Penalties if you operated traditional PAYE until 5 April 2014

Late returns

To avoid a late-filing penalty, you must ensure that the PAYE end-of-year forms P35, P14 and P11D(b) reach HMRC by their deadlines. Late-filing penalties apply whether you're filing online or on paper.

Penalties if you file PAYE returns late: P35, P14, P11D(b)

Late payment of PAYE tax or NICs

Follow the link below to find out about the late payment penalties which apply for all employers.

PAYE/National Insurance late payment penalties

Penalties for failing to file PAYE online

If you send any PAYE forms by paper or magnetic media when you're required to send them online, you will face penalties. These penalties will still be due even if you subsequently file an online version of the form(s) for which you've been penalised.


Check your PAYE tax position

You can check your PAYE tax position for 2010-11 and later years on your 'At a glance' page in the 'PAYE Online for Employers' service. You can see details of what you have paid and what you owe or are owed.

HMRC Online services

If you're already signed up for Business Tax Dashboard you can also view your liabilities and payments there.

Read more about HMRC's Business Tax Dashboard


How to appeal against any penalty you've been charged

You can find more information on how to appeal against a 'direct tax' decision, options available to you after you have appealed and your options if you and HMRC can't agree in the guide 'How to appeal against an HMRC decision - direct tax'.

How to appeal against an HMRC decision - direct tax


Penalties charged following a PAYE compliance check

From time to time HMRC will carry out checks to ensure that employers are keeping the right records and filling in their PAYE forms and returns correctly. The guide 'PAYE compliance checks and penalties' provides more information.

PAYE compliance checks and penalties