Hi Paula,

HMRC state that the FPS must be submitted on or before the date your employees receive their pay. In Sage 50 Payroll, when processing your employees' pay, you must set your process date to this date also. Therefore, if you submit an FPS after this date, HMRC want to know why.

When you submit the FPS, Sage 50 Payroll checks your system date and compares it to the last updated date in your software. If the system date is after the last updated date, you must select a late reason from a drop-down menu before you can continue.

HMRC use the reason supplied to help determine whether any late filing penalties are due, so it's important that you select the correct reason. If you're unsure of what reason to use, you should contact the HMRC Employer Helpline on 0300 200 3200. For more information, please refer to www.hmrc.gov.uk

If you qualify for the on or before rule relaxation, you can stop the FPS late reason prompt appearing incorrectly when submitting your FPS on or before the last pay date of the month. To do this you must select the relevant check box in e-Submission Settings. For more information, please refer to article 30400:

support.sage.co.uk/default.aspx

If you find yourself in a position where changing your software process/pay date to align with the date your employees are paid means you either miss a tax period or you try and process an employee twice in the same period, please refer to the Workarounds tab of Ask Sage article 29962:

support.sage.co.uk/default.aspx

This message can also incorrectly appear if you're using the Advance Pay option. If this is the case, in this instance you should choose None and continue with the FPS as normal. HMRC are aware of this issue and therefore won't question this FPS.

How do you allocate the late payment charges implemented by HMRC - mine is currently in my PAYE due to inland revenue

Hi Mandy,

You wouldn't allocate the late payment charges within the Payroll program. They are separate to the Payroll.

Sorry Dan, I meant in Sage Accounts

There isn't a default nominal code for PAYE charges within Sage Accounts, so it is up to you really where you would post it to. You could use a nominal code direct expenses (if you have a miscellaneous expenses code) or a code in the overheads section. If you are not sure which code to post the charge to then you would need to speak to your accountant for further advice.

Thank you Dan