There are no late filing penalties until the final Return in the current tax year 2013/14. See above Penalties Summary.
That might answer your question. I take it that the FPS has not been filed either and I would catch up with that or the EPS or both. The guidance is that you must file a Return every time you pay an employee so for this year, I would follow that.
I am sure HMRC's systems will notice if you don't file at all and you're slightly more prone to inaccuracy if you're not following rigid procedures.
I wish Parliament had not given so many new deadlines for the Revenue to have an open season. This only really affects smaller employers for whom a BACS service is uneconomic.
kind regards,
Tim
Edit: slight rewording
-- Edited by Don Tax on Friday 1st of November 2013 11:15:16 AM
I have a client who has a ltd company and is an employee of that company who sub contracts . As I have just taken over from someone else I have missed the September EPS - which was due between 6-19 October? My question is can I add Septembers amount to Octobers and send one big one in November?
Probably didn't answer you very well but I was trying to say that if you lump two months together then that is inaccuracy. Whereas if you're just late you can't be penalised this year. What is bothering you Georgie about sending it late ?
I have actually guided someone at work to do a similar thing but in that case it was worth taking the risk that if found out, HMRC would be lenient.
I'm taking it that your client doesn't sub-contracts workers as an individual?
I'm confused - what has CIS got to do with EPS and FPS - these are employee RTI terms, nothing to do with CIS - aren't they?
I have, on occasions, not been able to gain all the information from my clients as to which sub contractors have actually been paid during the previous 6th of the month to 5th of the current month. In this instance, I have included it on the following months CIS submission. As submissions are based on payment dates and not invoice dates, I've assumed this is OK and have never been 'pulled up' on it. It's only on 'end of year' that more care needs to be enforced, perhaps.
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Carol Saunders Lady of Ledger Book Keeping Telford, Shropshire
I'm confused - what has CIS got to do with EPS and FPS - these are employee RTI terms, nothing to do with CIS - aren't they?
I have, on occasions, not been able to gain all the information from my clients as to which sub contractors have actually been paid during the previous 6th of the month to 5th of the current month. In this instance, I have included it on the following months CIS submission. As submissions are based on payment dates and not invoice dates, I've assumed this is OK and have never been 'pulled up' on it. It's only on 'end of year' that more care needs to be enforced, perhaps.
If you're a Limited Company (as a sub-contractor) that has had CIS tax deducted from an invoice (by a main contractor) you could reduce your own PAYE/NI payments to HMRC by this amount and would need to inform this via EPS.
Too many abbreviations.
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Never buy black socks from a normal shop. They shaft you every time.
I have been on the lovely HMRC website and it clearly explains that CIS deductions suffered by a Limited Company have to be off set against any PAYE liabilities. Any overpayments at end of year have to be claimed for by writing to them and it gives the address. You should not just reduce your corp tax by that amount as you may be liable for a penalty.
As for submitting an EPS it is only for record purposes only...so basically it's to inform HMRC on an on going basis that there is a credit balance which will be reclaimed at year end. Of course if there were more employees working for this company you could off set the credit balance against the total PAYE & NI payable - so in effect reduce what you pay over.
And everything is OK with the software too ...
Best wishes Georgie
-- Edited by Georgie on Saturday 2nd of November 2013 02:19:15 PM
OK, I will try and explain why I can't submit last months...
I was given the FPS from the previous accountant for Sep 13 and in the Employer Totals under HMRC account it had a credit balance from Aug 13 of -XXXX and the credit balance to c/f to Oct 13 was the same credit amount.
So in Moneysoft under Employer, CIS reduction set off, I put that credit amount in month October.
So, when I processed his pay for Oct and submitted a FPS I was instructed that an EPS was due for Oct...... I then realised that Septembers EPS hasn't been submitted as I asked for the tax vouchers up to date and they only go to August.
So Tim, I cant submit an EPS for September. And I wondered if I could just lump the 2 months together and submit it in November (for Sept & Nov) otherwise I think I have to move the credit balance up one month, recalculate October pay, resubmit a FPS and then hopefully the box will say I have an EPS due for September. And not sure if that's a good idea.
Are you still with me??....... Of course I am not sure why the accountant did it this way in the first place as there is only one employee and he is the Director paying himself £641 a month. So the credit balance will never be set off against his Tax & NI. If you can help me understand why he did it this way would be a great help as he has stopped communicating with me.
Right ok. I'll probably misfire on this but if I try to understand then you can tell me where I've got it wrong.
Did you change to Moneysoft from some other system upon the handover from the previous bods ?
You say you can't submit for September. Is this more because you haven't got the vouchers or that the software won't let you?
I might suggest starting a new payroll file as from your take-over in order to file the missing EPS but I'm sufficiently uncertain of the consequences that you should try asking Moneysoft directly for their comments.
On the other hand, I think this might be another one where it might be worth the risk of lumping together as you first suggested. You would deserve to win on any penalty and HMRC are supposed to be policing the introduction of RTI with a light touch. By posting here and listening to my ramblings you have gone to some lengths to get it right under difficult circumstances.
As to why he did that, unless he was anticipating a future liability then I'll let others speculate.
