Running payroll in the UK is more than just paying staff on time. Employers have strict obligations to report pay and deductions to HMRC and pay the right tax and National Insurance (NIC) by set deadlines. Missing these deadlines can result in fines, interest, and extra administrative hassle.

Whether you’re a small business owner handling payroll yourself, a payroll administrator in a larger company, or an accountant advising clients, understanding these employee income tax deductions and electronic payment deadlines for your annual pay bill and PAYE deadlines is essential. This detailed guide explains the easiest way to meet key deadlines, penalties for missing them, and practical tips for staying on track.

What Are The Key PAYE Deadlines Employers Must Meet?

PAYE (Pay As You Earn) works on a system of real-time reporting and regular payments to HMRC, ensuring that employees receive their wages directly to their bank account. Employers must send specific submissions that include the employee’s tax code and make payments by set dates. Here’s what you need to know:

1. Full Payment Summary (FPS) Submission

The FPS is your core PAYE report. You must submit an FPS to HMRC on or before the date you pay your employees.

The FPS tells HMRC:

• What you’re paying each employee
• Tax and NIC are deducted for filing income tax returns.
• Student loan deductions, pension contributions, and other items

This real-time reporting system means you cannot delay FPS submissions until the end of the month. Each pay run triggers an obligation to file an FPS.

If you’re late in submitting your FPS without a valid reason, you may face penalties and incorrect employee tax records. HMRC may also see repeated late filings as non-compliance, risking further scrutiny.

2. Employer Payment Summary (EPS) Submission

The EPS is used to report adjustments that can’t go on an FPS. You need to submit an EPS by the 19th of the following tax month if:

• You’re reclaiming statutory payments (Statutory Maternity Pay, Statutory Sick Pay, etc.)
• You didn’t pay any employees in that tax month
• You’re claiming the Employment Allowance
• You need to adjust for apprenticeship levy overpayments

If you don’t send an EPS when required, HMRC will assume you owe the full amount calculated from your FPS submissions alone, which can result in overpaying or missing out on allowances.

3. PAYE Tax and NIC Payment Deadlines

Employers must pay the PAYE tax and NIC they owe to HMRC, or HM Revenue and Customs, by set dates. The deadline depends on your payment method and frequency:

• Monthly payments:
  • Payment is due by the 22nd (electronic) or 19th (post office) after the end of the quarter. To ensure a smooth transaction, it is important to include your payment reference in the correspondence.
• Quarterly payments (for small employers):
  • If your average monthly PAYE/NIC bill is £1,500 or less, you can pay quarterly.
  • Payment is due by the 22nd (electronic) or 19th (post) after the end of the quarter.

It’s critical to ensure payments reach HMRC by these dates to avoid late payment interest and surcharges.

Annual PAYE Deadlines

Beyond monthly submissions and payments, there are important annual deadlines every employer must meet:

• Final FPS or EPS for the tax year:
  • Must be submitted by 19 April after the end of the tax year.
  • Confirm the final figures for pay, tax, and NIC.
• P60 distribution to employees:
  • By 31 May, employers must give each employee who was on the payroll at year-end a P60 summarising their total pay and deductions for the year.
• P11D and P11D(b) submissions:
  • Due by 6 July.
  • Used to report expenses and benefits provided to employees, where the use of software is important for accurate reporting.
  • P11D(b) declares the Class 1A NICs due on those benefits.
• Payment of Class 1A NICs:
  • Must be paid by 22 July if paying electronically or 19 July if paying by post.

Missing these annual deadlines can result in penalties and interest charges and can also complicate employee tax affairs.

Here’s a table at a glance for the same.

What Are the Penalties for Missing PAYE Deadlines?

HMRC imposes a range of penalties and charges to encourage employers to meet their PAYE obligations on time. Missing deadlines doesn’t just create admin headaches; it can cost you money and increase the risk of further HMRC attention.

1. Late Filing Penalties

If you submit your Full Payment Submission (FPS) or Employer Payment Summary (EPS) after the deadline without a valid reason, HMRC will charge monthly penalties based on your employee count. For example, penalties range from £100 per month for small employers to £400 per month for large ones. Repeated late filings can lead to even higher cumulative costs over the tax year.

2. Interest on Late Payments

HMRC charges daily interest on late PAYE and National Insurance payments. Interest accrues from the due date until the payment is made in full. Even short delays can lead to extra costs that add up over time, making prompt payment essential.

3. Surcharges for Persistent Late Payment

If you repeatedly pay late, HMRC may impose percentage-based surcharges on top of interest charges. These surcharges are typically around 5 per cent of the unpaid amount. Persistent lateness can make your overall PAYE liability significantly more expensive.

4. Compliance Reviews

Chronic non-compliance with PAYE deadlines can trigger HMRC audits or closer monitoring of your payroll processes. A compliance review increases administrative burden and can uncover other issues that result in further penalties. Staying on top of deadlines is the best way to avoid unwanted scrutiny.

What Are The 5 Tips to Stay on Track With PAYE Deadlines?

Meeting PAYE deadlines is essential for avoiding HMRC penalties and keeping your payroll running smoothly. Here’s how you can make sure you stay organised and compliant.

1. Use Payroll Software with RTI Support

Modern payroll software with Real Time Information (RTI) support can automatically generate and submit your FPS and EPS to HMRC. Many systems also provide built-in reminders for payment dates, helping you avoid last-minute rushes and reducing the risk of errors.

2. Choose HMRC-Recognised Software

Using HMRC-approved payroll software ensures your system meets official requirements and stays up to date with changing rules. HMRC maintains a list of recognised providers, so you can choose with confidence that you’re getting reliable compliance features. HMRC requires all employers to report PAYE in real time online, making payroll software essential for most businesses (HMRC PAYE Online and Payroll Software Guide)

3. Set Calendar Reminders

Don’t rely on memory alone to manage PAYE tasks. Use a digital calendar or task management app to schedule reminders for PAYE payment deadlines, monthly FPS submissions, and annual returns like P60S or P11Ds. This helps prevent accidental oversights that can lead to penalties.

4. Plan Ahead for Busy Periods

Consider workload peaks, holidays, and staff absences that might disrupt your normal payroll routine. Setting reminders early enough and planning for these periods ensures you can complete PAYE tasks on time, even during busy seasons.

5. Outsource Payroll if Needed

If managing PAYE feels too time-consuming or complex, consider outsourcing to a professional payroll provider like Direct Payroll. We can handle submissions, tax payments, and compliance on your behalf, freeing you up to focus on other areas of your business. By outsourcing, you can significantly reduce the administrative workload and minimise stress around PAYE deadlines. Professional providers are experts in staying compliant with HMRC rules and help avoid mistakes that can lead to penalties.

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Conclusion

Understanding and meeting HMRC PAYE deadlines is a vital part of running payroll in the UK, including paying your HMRC PAYE bill on time. Getting it right means avoiding costly penalties, protecting your business’s reputation, and ensuring your employees’ tax records stay accurate.

By learning the key deadlines, setting up reliable systems or software, and seeking professional help if you need it, you can keep your payroll running smoothly and stay fully compliant with HMRC requirements.

If you’re unsure about your PAYE obligations or facing challenges meeting them, consider talking to an accountant or payroll specialist. Staying on top of these deadlines will save you time, money, and stress in the long run.

Frequently Asked Questions

What happens if I miss a PAYE deadline?

Missing a PAYE deadline for PAYE payments can lead to fines and penalties from HMRC. This can hurt the financial health of your business, especially if it’s the first time you’ve missed it. If you send in your payroll late, the tax may not be worked out right.

Can I pay PAYE quarterly instead of monthly?

Employers who have smaller payrolls can pay PAYE every three months instead of each month, and one option includes using direct debit or telephone banking for your PAYE payments. This depends on certain rules set by HMRC about how much tax is deducted. You need to know what these rules are and follow them. If you do not meet these requirements, you could get penalties.

What records do I need to keep for PAYE compliance?

To follow PAYE rules, you need to keep clear records. These records should include things like details about each employee, payroll data, tax taken off, and when payments be made. Hold on to P60s, P11Ds, and other important papers for at least three years after the end of the tax year. This is good for audits and helps you keep your money records straight.

How do I correct mistakes in my PAYE submissions?

To fix mistakes in PAYE submissions, you should quickly send in a new return. Add a note to explain the change. Make sure all the data is right before you finish. If forms like P60 or P11D are wrong, you need to send them again with the right details. It is important to act fast. Doing so helps you avoid penalties and helps you follow HMRC rules.

Are there special PAYE deadlines for new employers?

Yes, new employers need to follow the same PAYE deadlines as other established businesses. But in their first year, they may have to report things in a different way, including how work benefits, such as those under the construction industry scheme, affect payroll calculations.

What are the key HMRC PAYE deadlines for employers?

Key HMRC PAYE deadlines for employers include the 19th of each month for submitting payroll information to HMRC and the 22nd for the electronic remittance of PAYE tax owed. Additionally, employers must file annual returns by July 6th and provide P60s to employees by May 31st each year.