Penalties for late reporting

Q. I am established as a Ltd in England where I am the only employee receiving 800 pounds/month wage. I am hoping the Ltd will be able to have a positive balance someday next year and I will finally receive my salary in a retroactive basis. Despite not receiving my salary for now I believe this arrangement allows me contributing to my pension, etc without paying much NICs/tax until I reach the time to generate some profit. Regarding my 2014-15 accountability I have not reported the RTI PAYE since August 2014 (I thought I could do it at the end of the 2014-15 tax year) and I have submitted only one EPS in October 2014. I just realised the Gov is applying penalties for late reporting since late 2014 and I have missed other reporting documents like the FPS. How would you recommend reporting from August 2014 up to now to minimise the penalties that would apply for late reporting? Thank you for your time.

Class 1 NIC

Employees have their rights to state pensions & other contributory benefits protected by reference to a lower pay figure. They are treated as paying notional NIC between the lower earnings limit & the primary threshold, currently £112 – £155. However, salary must have been physically paid.

RTI Reporting

All outstanding returns should be brought up to date without further delay. In addition, I would recommend that you also write to HMRC separately to explain the reason why they have delayed submitting RTI reports.

Please refer to HMRC’s guidance HERE, in particular:

If you don’t pay any employees in a tax month
Don’t send an FPS. Send an EPS by the 19th after the tax month you didn’t pay any employees. The tax month starts on the 6th.
HMRC has guidance on what to put in your EPS if you haven’t paid anyone.
If you don’t send an EPS, HMRC may send you a notice through PAYE Online and estimate how much you should pay.

If you don’t pay anyone for a longer period
You can tell HMRC up to a year in advance that you won’t pay any employees. To do this, enter dates in the ‘Period of inactivity’ fields in your EPS.