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| PAYE Penalties |
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| Monday, 05 October 2009 08:57 |
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From May 2010 you may have to pay a penalty if you do not pay the PAYE due each month, on time and in full. What if I do not pay on time? It is intended to implement the late payments penalties for payment due from May 2010. From then on, you may have to pay penalties if you make more then one PAYE payment late. The new penalties apply to all employers.
How will the new penalties work? The penalties will be a percentage of the amount you pay late. They will start at 1% and increase to 4% depending on the number of late payments in a year.
There are also penalties of 5% if any of the PAYE due is still not paid after 6 months; and again after 12 months.
You will not get a penalty if you have a reasonable excuse for being late once in the tax year (unless the payment is more then 6 months overdue). You can also appeal against the penalty if you disagree with HMRC’s decision to impose it, or if you believe the amount of the penalty is wrong.
The PAYE payment deadlines are: 19th of the month if you send the payment by post (or 17th of the month if you are a large employer). If these dates fall on a weekend of a bank holiday your payment needs to be received on the last bank working day before the 19th or 22nd. If the amounts you pay are likely to average less then £1,500 per month over the year, you can pay quarterly.
You should tell HMRC as soon as you can, if you think you will have difficulty paying, otherwise they may start recovery action.
Please contact the dedicated Business Payment Support Service (BPSS) on 0845 302 1435 – Monday to Friday 8.00 am to 8.00 pm; and Saturday and Sunday 8.00 am to 4.00 pm.
If HMRC agree a payment arrangement with you, you will not be charged any penalties for the period of your agreement. Any penalties already charged can also be included in the payment arrangement.
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