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PAYE50910 | Employer returns: employer starter and leaver forms: employer e-file in-year penalties: calculation of a fixed penalty

From HM Revenue & Customs · PAYE Manual

The fixed penalty is calculated and issued automatically by the Employer Compliance System (ECS).

The minimum amount that can be charged for a fixed penalty is ‘0’.

The higher the number of starter and leaver forms filed paper in any tax quarter, when they should have been filed online, the higher the penalty.

The method of calculation of a fixed penalty by ECS is shown in the tables below.

Medium and large employers only for tax year 06/04/2010 to 05/04/2011

Number of paper starter and leaver forms included in the quarterPenalty(£)
1 - 5NIL
6 - 49£100
50 - 149£300
150 - 299£600
300 - 399£900
400 - 499£1,200
500 - 599£1,500
600 - 699£1,800
700 - 799£2,100
800 - 899£2,400
900 - 999£2,700
1,000 or more£3,000

Small employers for the tax quarter 06/01/2012 to 05/04/2012 and tax year 06/04/2012 to 05/04/2013

Warning letters will be issued to small employers who fail to submit their PAYE in-year forms online between 6 April 2011 and 5 January 2012. Only one warning letter will be issued to each small employer per quarter following the first failure in that period.

Medium and large employers for the tax year 06/04/2011 to 05/04/2012 and 06/04/2012 to 05/04/2013

Number of paper starter and leaver forms included in the quarterPenalty(£)
1 - 2NIL
3 - 49£100
50 - 149£300
150 - 299£600
300 - 399£900
400 - 499£1,200
500 - 599£1,500
600 - 699£1,800
700 - 799£2,100
800 - 899£2,400
900 - 999£2,700
1,000 or more£3,000

Small, medium and large employers from tax year 06/04/2013 onwards

Number of paper starter and leaver forms included in the quarterPenalty(£)
1 - 49£100
50 - 149£300
150 - 299£600
300 - 399£900
400 - 499£1,200
500 - 599£1,500
600 - 699£1,800
700 - 799£2,100
800 - 899£2,400
900 - 999£2,700
1,000 or more£3,000