New Penalties for late PAYE

May 6th, 2010  |  Published in Uncategorized

From this current tax year HMRC can impose penalties if you are late in paying over the payroll and CIS deductions you make in the tax year. ‘Late’ in this context means the payment reaches the Tax Office after the 19th of each month, (or 22nd when paying electronically).

Until now the Taxman did not impose penalties or interest on small employers if all the payroll deductions for the year reached him by 19th April (or 22nd) after the end of the tax year.

The penalty will be based on the total amount of deductions paid late for the tax year and will be calculated based on the number of times payments are late in a tax year as follows …

Late once – no penalty

Late 2 to 4 times – 1% penalty

Late 5 to 7 times – 2% penalty

Late 8 to 10 times – 3% penalty

Late 11 or more times – 4% penalty

The penalty applies to the total amount that is late in the tax year (ignoring the first late payment in that tax year)

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