HMRC penalties for PAYE late filing and late payment to remain risk-based

23 Aug 2019

Following a review, HMRC has said it will continue its risk-based approach to Pay as You Earn (PAYE) Real Time Information (RTI) late filing and late payment penalties this tax year.

Rather than late filing and late payment penalties being issued automatically, the tax authority will consider them on a risk-assessed basis during 2019/20. HMRC has also confirmed that penalties for 2019/20 will be issued from September 2019.

In its latest Employer Bulletin, the tax authority said: 'HMRC will not charge penalties automatically for 2019/20, provided a Full Payment Submission (FPS) is filed within three days of the payment date. Where there is a pattern of persistent late-filing within three days of the statutory filing date, employers will be reviewed and may be charged a filing penalty as part of HMRC's risk-based approach.'

HMRC's approach is based on 'areas of greatest risk and non-compliant behaviour', it added.

The date for making PAYE payments to HMRC electronically is the 22nd of the month (or quarter for those eligible to pay quarterly) following the tax month or period to which they relate. For cheque payments or other non-electronic methods, payment is due by the 19th of the following month or quarter to which the payment relates.

HMRC may charge interest on the amount outstanding for late payment, which will accrue until the total amount is paid.


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