Compliance and Penalties
ITIP = Income Tax Instalment Payments
NI = National Insurance
| Requirement | By when | How | Penalty (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 employees' pay | 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. Directors may be held personally liable for the employer's debt via prosecution action against the company |
| 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 |
