Risk-based approach to penalties will continue

HMRC has reviewed the effectiveness of the risk-based approach to late-filing PAYE penalties and decided to continue this method for 2017-18. This means that late filing penalties will continue to be reviewed on a risk-assessed basis rather than be issued automatically. The first penalties for 2017-18 will be issued in September 2017.

As a result penalties will not be charged for delays of up to three days for full payment submissions. This is not an extension to the statutory filing date which is unchanged. Employers that persistently file after the statutory filing date but within three days will be monitored and may be considered for a penalty.

Late payment penalties will also continue to be raised on a risk-assessed basis rather than automatically.

HMRC will continue to review their approach to PAYE penalties beyond 5 April 2018 in line with its wider review of penalties. It will focus on...