HMRC relaxes late filing deadline for PAYE

02/23/2015 - 10:21

Some potentially good news for contractors who operate through their own limited company is that HMRC have relaxed their deadline for Limited Companies (with less than 50 employees) that are adjudged to be late filing their monthly PAYE returns and hence liable for a penalty.

For qualifying businesses HMRC have allowed an additional 3 days grace before penalties will apply. These penalties will continue to be on a risk assessed basis rather than issued automatically in all cases.

Further good news is that you have received a penalty fine in the past you may be liable to a refund. HMRC state “Any employer that has received an in-year late filing penalty for the period 6 October 2014 to 5 January 2015 and was 3 days late or less, should appeal online by completing the “Other” box and add “Return filed within 3 days”.

HMRC are currently performing a discussion on penalties and in particular the negative impact automated penalties have. HMRC state penalties exist as a motivation to encourage people to comply to deadlines. In reality they can seem excessive to small businesses for what might be a simple administration error and can actually have the opposite to the desired effect by demotivating people in their dealings with HMRC.

The full discussion document is available at:

If you are a small business struggling to meet your tax or PAYE deadlines then Umbrella Accountants LLP can help. Please call us on 0800 121 6513.