Employers are obligated to submit Full Payment Submissions on or before each pay day. If they are not able to meet the obligation a Late PAYE reporting reason must be included in FPS submissions in the 2014-15 tax year. HMRC will use the reason supplied to prevent messages and penalties being issued where they should not be.
The permitted reasons are:
• A (Notional payment: Payment to Expat by third party or overseas employer)
• B (Notional payment: Employment related security)
• C (Notional payment: Other)
• D (Payment subject to Class 1 NICs but P11D/P9D for tax)
• E (Micro Employer using temporary "on or before" relaxation)
• F (No working sheet required; Impractical to report)
• G (Reasonable excuse)
• H (Correction to earlier submission).
Late PAYE reporting reasons can either be assigned separately to individual employees using the Details & Bank form linked to their employee record or to all employees using the Full Payment Submission form.
If a late reporting reason is used it will be cleared by the Update command at the end of the tax period (accessed from the Payroll - Utilities menu).
Details & Bank form
The Details & Bank form (accessed from the Payroll - Processing menu) now includes a new list box that includes the permitted reasons for late reporting.
This can be used to assign a late reporting reason for the current period for individual employees.
Full Payment Submission form
The Full Payment Submission form (accessed from the Payroll - RTI Submissions menu) includes a new list box used to assign a reason for all employees in the submission. Any reason selected for an individual employee will override what is selected here.