Payroll Compliance in 2025: Avoiding HMRC Penalties
Payroll Compliance in 2025: Avoiding HMRC Penalties
Running payroll in the UK is more than just paying your employees on time — it’s about meeting strict HMRC requirements and ensuring every submission is correct. Mistakes can lead to costly penalties and damage your business’s reputation.
Key Payroll Compliance Requirements
Real Time Information (RTI) Reporting — You must submit a Full Payment Submission (FPS) to HMRC every time you pay staff, showing pay, tax, and National Insurance deductions.
Payment Deadlines — PAYE and NIC must reach HMRC by the 22nd of the month (19th if paying by cheque). Late payments can result in penalties.
Pensions Auto-Enrolment — Eligible staff must be automatically enrolled into a workplace pension scheme, and both employer and employee contributions must be paid on time.
Payslip Requirements — Employees must receive an itemised payslip, including hours worked if pay varies.
Common Causes of HMRC Penalties
Submitting FPS late or with errors.
Missing PAYE deadlines.
Not enrolling eligible employees into a pension scheme.
Incorrect tax code usage.
Payroll Best Practices for 2025
Use payroll software (such as BrightPay or Xero) that integrates with HMRC for seamless submissions.
Check employee details regularly to avoid incorrect payments or deductions.
Schedule reminders for FPS submissions and PAYE payment deadlines.
Review pension compliance at least annually to ensure all eligible staff are covered.
How ASKFinance Supports Payroll Compliance
We manage your payroll from start to finish, ensuring every HMRC requirement is met. From accurate RTI submissions to pension contributions, our team keeps you compliant, avoids penalties, and gives you peace of mind.
Book a free consultation using the button below, or leave your details via the contact form, and we’ll get back to you promptly.
