HMRC have announced that they are changing their approach to issuing multiple penalty notices for the same PAYE non filing default. These changes impact both the above tax years.

Up to and including 2013–2014, employers who do not meet their filing obligations may be liable to an escalating penalty, based upon the size of the employer and the number of months for which the filing default persists. The penalty will be £100 per 50 employees for each month or part month the returning is outstanding from 20 May 2014 to 19 September 2014. So an employer with 50 or less employees where the return is still outstanding by 20 September 2014 will receive a penalty of £400.

As part of HMRC’s transition to in-year PAYE Real Time Information penalties for late and non-filing, HMRC are changing their approach to issuing updated penalty notices for the same PAYE non filing default. These changes impact both the 2012–2013 and 2013–2014.