At CHW Small Business Accountants in Bolton we found that increasingly, as employers and business owners our clients were struggling to make their FPS on time. That’s why more and more of them are passing the responsibility to us.
Nicola Roby, Director at Bolton Accountants CHW explains. FPS is a submission that you need to make to HMRC every time you pay your employees. The information included in the FPS includes employer and employee information, pay and deductions and any reasons for late reporting. All employees must be included regardless of what they earn.
The information which is submitted to HMRC helps them monitor whether each individual’s tax and NI contributions are correct, and there can be repercussions if the submissions are either late or inaccurate.
As an employer you need to make your FPS to HMRC on or before the date you pay your employees and penalties can apply each time an FPS is late. HMRC doesn’t automatically raise a penalty for late submissions, especially if the submission is made within three days of the due date but if you are persistently late with submitting your FPS, HMRC will consider imposing a penalty.
The FPS can be made online using the PAYE reference and accounts office reference for the company and there are many cloud based software providers which link in directly to HMRC.
Further complications can arise when an employer needs to submit an Employment Payment Summary (EPS) in addition to the FPS such as in circumstances of maternity pay, paternity pay, adoption pay, CIS, apprenticeships as just a few examples.
There is an incredible administrative challenge for employers in keeping up with all the requirements associated with payroll which is why many of our clients choose to outsource this responsibility to us.
If you would like help with payroll and FPS or for any other advice, contact Nicola Roby, Director at CHW Small Business Accountants in Bolton on 01204 534031 or via our enquiry form.
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