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Compliance and Penalties

ITIP = Income Tax Instalment Payments

NI = National Insurance

RequirementBy whenHowPenalty (if not done)
Register for Online Services (and submission of notifications and Returns to us via online services) When you have 5, or more, employees (although we encourage all employers to register) Click on any of the Tax Online Services links on our website, choose Employer Tax Service and New User options as appropriate Upon summary conviction, a fine up to £5,000
Notify us of becoming an employer Within 14 days of first payment to employee

Complete the relevant form:

T30c employer is a company

T30i employer is an individual

T30x employer is a partnership

T30p pension provider registration

£250
Notify us of an employee starting Within 14 days of the employee starting Form T20 £250
Provide your employee with payslips Every payday Should include the gross amount and any additions e.g. bonus and deductions e.g. ITIP and NI £250
Notify us of an employee finishing Within 14 days of the employment ending Form T21 £250
Apply the correct tax code when deducting ITIP from your employee'spay From the effective date shown on the coding notice Update the tax code as advised on the tax coding notice or, (if a new employee). Use the code on form T21 provided to your employee by their previous employer or, apply the relevant emergency code and contact us £250 and liable for any underpayment of employee ITIP
Apply the correct National Insurance (NI) deduction From employee starting and when circumstances change Deduction table letters are shown on the National Insurance webpage Liable for any underpayment of employee and employer NI. Directors may be held personally liable for the employer's debt via prosecution action against the company
Submit the monthly notification of deductions with payment of ITIP and NI By the 19th of the month following the month the payment is made Form T35. Must be submitted even if there has been no payment that month (£0.00) 5% of the amount due (which we may estimate) and if still outstanding after six months an additional 5%
Send us your Employer's Annual Return Within 30 days after the end of the tax year (by 5th May) Or if ceasing to be an employer, then 30 days after the last employee ceases

Form T37

Form T14 & T9

If the Return is not fully and accurately completed it may be returned to you and will be treated as an outstanding Return.

£250 and £50 per day until the return is submitted.

Continued failure to submit a properly completed return may result in prosecution

Send us notification of ITIP and NI deducted for each person employed during the tax year Forms part of the Employer's Annual Return above

Form T14.

Must be submitted for each employee , even if there have been no deductions made

Part of the Employer's Annual Return above
Send us notification of expenses payments and benefits for each person employed during the tax year Forms part of the Employer's Annual Return above

Form T9

Only required for employees who have had expenses payments and/or benefits.

Part of the Employer's Annual Return above
Keep payroll records For 3 years after the end of the tax year to which the return relates Keep all records and supporting documents, such as accounts, books, deeds, contracts, vouchers and receipts, and provide them to us upon request. £250
Comply with the Income Tax (Instalment Payments) Act 1974 and associated Regulations As required in legilslation and regulations Comply with the above noted requirements and any other legislative or regulatory requirements (we will usually contact you if we notice any problems) £250
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