Payroll Professionals – Don’t get caught out by 2017/18 penalties

For most, the 2017/18 tax year will be a distant memory now as the first payslips for the new tax year have been issued and started to land. Notably, 2018/19 has seen the minimum wage increase as well as the pension contributions.

Many employers and payroll professionals will be aware that the tax year still needs to be closed with the issue of P60’s. These are due at the end of May 18, and P11d’s to be processed in June 18.

For  those inexperienced, or simply ill-prepared for the year-end process, there could be a nasty surprise on the horizon. Typically, failure to submit RTI on time will result in a penalty from HMRC as these are being issued during week commencing 7th May 2018.

How these penalties are issued

These penalties are to cover the last quarter of the 2017/18 tax year (6th January 2018 – 5th April 2018) where a real time submission has been made late.

If a submission is made after the payment date, the payroll software used should require a reason for your late submission. An excuse is only deemed reasonable if something beyond your control has stopped the submission being made on, or before, the payment date.

A full list offered by software to support a submission being late can be found here: https://www.gov.uk/guidance/what-payroll-information-to-report-to-hmrc#late-reporting-reason

What if I receive a penalty?

If you do receive a penalty it is advisable to not delay in submitting an appeal (if you believe it has been issued incorrectly). You can submit an appeal through your online PAYE account. The online appeal system is one of the easiest and quickest ways to submit an appeal, and usually the response times are quicker than submitting a postal appeal.

When submitting an appeal HMRC advise to avoid using the reason ‘other’ (where possible), If there is a suitable alternative offered.  A full report of the facts surrounding why the submission was late is also a mandatory requirement since April 2017 as this will help HMRC come to an informed decision.


Managing your payroll in-house is becoming more and more complex.  The introduction of tighter regulations and more stringent polices are starting to cause a headache for in-house payroll professionals.

If you are looking to outsource your payroll, get in touch with a member of our Payroll Bureau team on 0800 195 3750. Alternatively, let the numbers do the talking and use our payroll calculator to see how much it would save you to outsource your payroll.